Accounting Policies of Sharpline Broadcast Ltd. Company

Mar 31, 2025

1. SIGNIFICANT ACCOUNTING POLICIES

A. Basis of preparation

i) Compliance with Ind-AS

These standalone financial statements (‘financial statements’) of the Company have been prepared in accordance with
the accounting principles generally accepted in India, including the Indian Accounting Standards (‘Ind-AS’) specified
under Section 133 of the Companies Act, 2013 (‘the Act’) and other relevant provisions of the Act. The Company
has uniformly applied the accounting policies during the periods presented.

ii) Historical Cost Convention

These financial statements have been prepared on the historical cost basis, except for certain financial instruments
which are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

B. Use of Estimates & Judgements

The preparation of financial statements requires the management to make judgments, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at
the end of the reporting period. Although these estimates are based on the management’s best knowledge of current
events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a
material adjustment to the carrying amounts of assets or liabilities in future periods.

Fair value measurement

The company measures financial instruments, such as investment in Equity share etc., at fair value at each
balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. The fair value measurement
is based on the presumption that the transaction to sell the asset or transfer the liability takes place either -

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

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole-

• Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.

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

C. Revenue Recognition
Sale of Services

Revenue from services is recognized over time as the services are performed, based on the terms of the contract.
If services are delivered continuously, revenue is recognized in proportion to the work completed. Revenue is
measured at the agreed price, excluding discounts and taxes.

Interest income from a financial asset is recognized 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.

Financial assets

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

Classification of financial assets

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

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

- those measured at amortized cost.

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

Effective interest method

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

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

Investments in equity instruments at FVTOCI

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

A financial asset is held for trading if:

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

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

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

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

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

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

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

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

Impairment of financial assets

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

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

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

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

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

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

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

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

Derecognition of financial assets

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

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

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

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

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

Equity instruments

All equity Instruments are classified at Fair Value through Other Comprehensive Income (FVTOCI). An equity
instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by a Company are recognised at the proceeds received, net of direct issue
costs.

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

Financial liabilities

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

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

Financial liabilities at FVTPL

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

A financial liability is classified as held for trading if:

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

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

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

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

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

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

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

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

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

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

Financial liabilities subsequently measured at amortised cost

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

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

Financial guarantee contracts

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

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

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

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

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

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

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

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

Derecognition of financial liabilities

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

D. Property, Plant and Equipment

(i) Property, plant and equipment

The initial cost of property, plant and equipment comprises its purchase price, including import duties and non¬
refundable purchase taxes, attributable borrowing cost and any other directly attributable costs of bringing an asset to
working condition and location for its intended use.

Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and
maintenance, are normally charged to the statements of profit and loss in the period in which the costs are incurred.
When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them
separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized
in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other
repair and maintenance costs are recognized in the statement of profit and loss as incurred.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds
from disposal with the carrying amount of property, plant and equipment, and are recognized net within other
income/other expenses in statement of profit and loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.

(ii) Depreciation

Assets in the course of development or construction and freehold land are not depreciated.

Other property, plant and equipment are stated at cost less accumulated depreciation and any provision for
impairment. Depreciation commences when the assets are ready for their intended use.

Depreciation is calculated on the depreciable amount, which is the cost of an asset less its residual value. Depreciation
is provided at rates calculated to write off the cost, less estimated residual value, of each asset on a written down
value basis over its expected useful life.

Major inspection and overhaul costs are depreciated over the estimated life of the economic benefit derived from such
costs. 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.

Depreciation methods, useful lives and residual values are reviewed at each financial year end and changes in
estimates, if any, are accounted for prospectively.

E. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.

F. Inventories

Inventories are valued at the lower of cost and net realizable value except scrap and by products which are valued at
net realizable value.

Costs incurred in bringing the inventory to its present location and condition, are accounted for as follows:

a. Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to their present
location and condition. Cost is determined on weighted average basis.

b. Finished goods and work in progress: cost includes cost of direct materials and labor and a proportion of
manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Cost is determined
on weighted average basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
and the estimated costs necessary to make the sale. Obsolete inventories are identified and written down to net
realizable value. Slow moving and defective inventories are identified and provided to net realizable value.

The company does not have any inventory.

G. Taxation
Current Income Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date.

Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in
other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying
transaction either in OCI or directly in equity. 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.

H. Earnings per share

Basic earnings per share is computed by dividing the profit/(loss) for the year by the weighted average number of
equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year
is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and
reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the profit/(loss) for the year as adjusted for dividend, interest and
other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the conversion of all dilutive potential equity
shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted
as at the beginning of the period, unless they have been issued at a later date.

I. Advances, Loans, etc.

In the opinion of Board, all Current Assets, Advances, Loans, etc., have a value on realization in ordinary course of
business at least equal to amount at which these are stated.

Statements of Accounts/ Confirmations have been sent by speed-post/ email on quarterly basis to Parties but from
some of the parties, the same are pending receipts and reconciliation. The adjustments, if any, will be made
accordingly.

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Mar 31, 2024

1. SIGNIFICANT ACCOUNTING POLICIES

A. General information and statement of compliance with Ind-AS

These standalone financial statements (‘financial statements’) of the Company have been
prepared in accordance with the accounting principles generally accepted in India, including
the Indian Accounting Standards (‘Ind-AS’) specified under Section 133 of the Companies
Act, 2013 (‘the Act’) and other relevant provisions of the Act. The Company has uniformly
applied the accounting policies during the periods presented.

These financial statements were approved for issue by the Board of Directors on 20-05-2024

B. Basis of preparation of Financial Statements

These financial statements have been prepared on the historical cost basis, except for certain
financial instruments which are measured at fair values at the end of each reporting period,
as explained in the accounting policies below. 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.

C. Functional and presentation currency

These Ind-AS Financial Statements are prepared in Indian Rupee which is the Company’s
functional currency.

D. Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable, net of
discounts, volume rebates, outgoing sales taxes and other indirect taxes.

Interest income from a financial asset is recognized 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.

E. Property, Plant and Equipment

(i) Property, plant and equipment

The initial cost of property, plant and equipment comprises its purchase price, including
import duties and non-refundable purchase taxes, attributable borrowing cost and any other
directly attributable costs of bringing an asset to working condition and location for its
intended use.

Expenditure incurred after the property, plant and equipment have been put into operation,
such as repairs and maintenance, are normally charged to the statements of profit and loss in
the period in which the costs are incurred.

When significant parts of plant and equipment are required to be replaced at intervals, the
Company depreciates them separately based on their specific useful lives. Likewise, when a
major inspection is performed, its cost is recognized in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are satisfied. All other repair and
maintenance costs are recognized in the statement of profit and loss as incurred.

Gains and losses on disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and
equipment, and are recognized net within other income/other expenses in statement of profit
and loss.

The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(ii) Depreciation

Assets in the course of development or construction and freehold land are not depreciated.
Other property, plant and equipment are stated at cost less accumulated depreciation and any
provision for impairment. Depreciation commences when the assets are ready for their
intended use.

Depreciation is calculated on the depreciable amount, which is the cost of an asset less its
residual value. Depreciation is provided at rates calculated to write off the cost, less estimated
residual value, of each asset on a written down value basis over its expected useful life.

Major inspection and overhaul costs are depreciated over the estimated life of the economic
benefit derived from such costs. 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.

Depreciation methods, useful lives and residual values are reviewed at each financial year end
and changes in estimates, if any, are accounted for prospectively.