Notes to Accounts of Veritaas Advertising Ltd.

Mar 31, 2025

2.9 PROVISIONS AND CONTINGENT LIABILITIES AND ASSETS
Provisions

Provisions are recognized when (he Company has a present legal or constructive obligation as a result of a past events, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.

If the effect of the time value of money is material, provisions arc discounted using a current pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognized as a finance cost.

Contingent liabilities

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Where it is not
probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is
disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote.

2.10 EMPLOYEE BENEFITS

Employee benefit liabilities such as salaries, wages and bonus, etc. that arc expected to be settled wholly within twelve months alter
the end of the reporting period in which the employees render the related service arc recognized in respect of employee’s services up
to the end of the reporting period and arc measured at an undiscountcd amount expected to be paid when the liabilities arc settled

Post Retirement Employee Benefits

Gratuity

(a) Defined contribution plans:

Defined contribution plans are employee stale insurance scheme and Government administered pension fund scheme for all
applicable employees and superannuation scheme for eligible employees. The Company’s contribution to defined contribution plans
is recognized in the Standalone Statement of Profit and Loss in the financial year to which they relate.

(b) Defined benefit plans

Defined Benefit plans are the plans for which the benefits has been defined for the eligible employees which are meant to he paid to
then at the time of retirement.

2.11 INCOME TAXES
Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. The amount of current lax reflects the best estimate of the tax amount expected to
be paid or received after considering the uncertainty, if any relating to income taxes. It is measured using tax rates enacted for the
relevant reporting period. It is determined as the amount of tax payable under the provisions of Income Tax Act, 1961, in respect of
taxable income for the year.

Deferred Tax

Deferred income taxes reflect the impact of current year timing difference between taxable income and accounting income for the
year and reversal of timing difference of earlier year. Deferred tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.

Tax for earlier Years

The Company recognizes and accounts for tax liabilities arising from earlier years in accordance with the provisions of the Income-
tax Act, 1961, and applicable accounting standards. In cases where income tax assessments for previous years result in additional
tax liabilities, the Company makes provisions for such liabilities in the year the assessments are finalized. Interest on income tax, as
stipulated under sections 234A, 234B, and 234C of the Income-tax Act, 1961, is recognized as an expense in the year the related tax
liability is determined.

2.12 FOREIGN CURRENCY TRANSACTIONS AND TRANSLATIONS

On initial recognition, all foreign currency transactions are converted and recorded at exchange rates prevailing on the date of the
transaction. As at the reporting date, foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on
the Balance Sheet date and the exchange gains or losses are recognised in the Statement of Profit and Loss. Non-monetary items
which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the
transaction .

2.13

REVENUE RECOGNITION

Revenue from consultancy, advertising, media planning, and other service-based contracts is recognized over time, as the customer
simultaneously receives and benefits from the services rendered. Revenue from the sale of service, including printed materials,
packaging, and advertising objects, is recognized at the point in time when control of the goods is transferred to the customer,
generally upon delivery. In cases where the Company arranges media space or time on behalf of clients and acts as an agent, revenue
is recognized on a net basis. Where the Company is the principal, revenue is recognized on a gross basis. For contracts involving
multiple elements, the total transaction price is allocated to each distinct performance obligation based on their selling prices, and
revenue is recognized as each obligation is satisfied. Amounts received in advance from customers are recognized as contract
liabilities and recorded as revenue when the corresponding performance obligations are fulfilled.

Other Income

Other Income is accounted for on accrual basis except where the receipt income is uncertain-

2.14 INVESTMENTS

Long-term Investments are carried at cost. However, provision for diminution in value is made to recognize a decline, other than
temporary, in the value of the investments.

Current Investments are carried at lower of cost or market value. The cost of securities sold is determined on the first-in-first-out
(FIFO) method.

2.1 S EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity share holder, by weighted
average number of equity share outstanding during the period.

Diluted earnings per share is computed by dividing the net profit or loss attributable to equity share holder by weighted average
number of equity and equivalent diluted equity share outstanding during the year except where the result would be antidilutive.

2.16 CASH AND BANK BALANCE

Cash flows are reported using the indirect melhod, whereby profit before tax is adjusted for the effects of transactions of non-cash
nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated
with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated,
accordingly- Cash and cash equivalents in the cash flow comprise cash at bank, cash/cheques in hand and short-term investments
with an original maturity of three months or less.acquisition. Hence, normally, deposits with original maturity of three months.
Further, bank balances held as margin money or security against borrowings are neither in the nature of demand deposits, nor readily
available for use by the company, and accordingly, do not meet the aforesaid definition of cash equivalents. Thus, this is an apparent
conflict between the requirements of die Schedule III and the Accounting Standards with respect to which items should form part of
Cash & Cash equivalents.Accordingly, the conflict should be resolved by changing the caption “Cash and cash equivalents” to
“Cash and bank balances,” which may have two sub-headings, viz., “Cash and cash equivalents” and “Other bank balances.” The
former should include only the items that constitute Cash and cash equivalents defined in accordance with AS 3 (and not the
Schedule III), while the remaining line-items may be included under the latter heading.

2.17 CHANGES IN ACCOUNTING POLICIES IN THE PERIODS/YEARS COVERED IN FINANCIALS

As in the reporting period of financials, the Company was converted from a Private Limited Company to a Public Limited Company
pursuant to the provisions of the Companies Act, 2013 and has accordingly changed its name from Veritaas Advertising Private
Limited to Veritaas Advertising Limited with effect from 31st January,2024. Consequent to this change in legal status, the Company
has reviewed its accounting policies and financial reporting framework to align with the enhanced regulatory and disclosure
requirements applicable to public companies.

There has been no material impact on the financial statements as a result of this conversion, except for enhanced disclosures and
compliance with additional reporting requirements under (he Companies Act, 2013

IT. Terms/rights attached to canity shares :

No Convertible securities have been issued by the company during the period
No calls are unpaid by any Director and officer of the company during the period.

The Company has not issued/ allotted any shares pursuant to cantract(s) without payment being received in cash during current period and
The Company has not bought back any shares during current period and previous five years.

No equity shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance
Sheet date.

The Company has only one class of issued shares i.e. Ordinary Equity Shares having par value of Rs.10 per share. Each holder of Ordinary
Note lur IPO and Bonus Issue ill shares

The Company has only one class of issued shares i.c. Ordinary Equity Shares having par value of Rs. 10 per share. Eaeh holder of Ordinary
Shares is entitled to one vote per share. The Company has completed its initial public offer (IPO) of 7,44,000 Equity shares of face value of Rs
10 each at an issue price of Rs 114/- per share amounting to Rs 848.16/- Lakhs The equity shares of the company were listed on NSE
EMERGE Platform (India Limited ("NSE EMERGE") on 21st May, 2024.

The Board of Directors, at their meeting held on 20th November,2023, approved the private placement of 9,000 shares of the company at a
price of Rs. 1,200 per share which includes seeurilics premium of Rs. 1,190 per share and subsequently the shareholders at their extraordinary
general meeting held on 24th November, 2023 gave consent to the issue and allotment of the abovementioned shares, and thereafter the Board
of Directors, at their meeting held on 30th November, 2024 approved the allotment of the aforementioned equity shares of t 10/- each which
resulted in increase in paid-up, issued and subscribed equity shares capital of the Company from 90,000 equity shares to 99,000 equity shares
face value of 7 10/- per share. As per resolution passed, the 9000 shares will rank pari-passu in all respects with the equity shares of the
company.

The Board of Directors at their Meeting held on December 22, 2023 after the approval of the members vide their special resolution allotted
and issued bonus shares 19,80,000 of Rs. 10/- each credited as fully paid up shares in the ratio of 20:1 existing fully paid up equity share held
by the shareholders of the company on December 22, 2023(Record Date) out of Securities Premium and accumulated profits of the company
for an aggregate nominal value of Rs,198.00 lakhs.

35 Additional Disclosures

A) The company do not have any Bernini property, where any proceeding has been initiated or pending against the company for bolding any Bernini Property.

B) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

C) the company do not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

D) The company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

F.) ''Ihe company has not trailed or invested in Crypto currency or Virtual currency during tlie financial year.

F) The Company has not advanced any fund to any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the person or edity shall;

a) directly or indirectly tend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries); or

b) provide any guarantee, security or the like oil behalf of the Company.

G) The Company has not received any final from any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded hi writing or otherwise) that the Company .shall:

a) directly or indirectly tend or invest in other persons or ertitics identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries); or

b) provide any guarantee, security or the like oil behalf of the Company,

H) Ht Company do not have any such transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 196L

36 Trade Receivables, Loans and Advances and Creditors are subject to confirmation and the consequential reccum lialioii thereof.

37 Previous year figures have been regroupcd/rcarrangcd'' reclassified where necessary to correspond with current year figures.

38 Figures represerting 0.00 Lakhs are below Rs 500.

For AAAI & Associates For and un behalf of the Board

Chartered Accountants VERITAAS ADVERTISING LIMITED

Finn''s Registration No. with ICAId2245$E (Formerly Known As Verflans Advertising Private Limited)

CEV: L74999WB2018PLC227215

(Niraj Agarwal) Debo jyoti Hanerjee (Sayantaa Roy)

Partner Manaeine Director CFO

Membership No.:301680 DEN: 08126557

Place: Kolknln

Date: 3Dlh Day nr May, 2025

(JOIN; 2530168IIBVINWl V6533 Sangita Debnalh I.Vlahima KhandelwHJ)

Whale-time director Company Secretary

DIN 10419140

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Mar 31, 2024

e) The Board of Directors, at their meeting held on 20th November,2023, approved the private placement of 9,000 shares of the company at a price of Rs.1,200 per share which includes securities premium of Rs.1,190 per share and subsequently the shareholders at their extraordinary general meeting held on 24th November, 2023 gave consent to the issue and allotment of the abovementioned shares, and thereafter the Board of Directors, at their meeting held on 30th November, 2024 approved the allotment of the aforementioned equity shares oR 10/- each which resulted in increase in paid-up, issued and subscribed equity shares capital of the Company from 90,000 equity shares to 99,000 equity shares face value of ^ 10/- per share. As per resolution passed,the 9000 shares will rank pari-passu in all respects with the equity shares of the company.

f) The Board of Directors at their Meeting held on December 22, 2023 after the approval of the members vide their special resolution alloted and issued bonus shares 19,80,000 of Rs. 10/- each credited as fully paid up shares in the ratio of 20:1 existing fully paid up equity share held by the shareholders of the company on December 22, 2023(Record Date) out of Securities Premium and accumulated profits of the company for an aggregate nominal value of Rs.198.00 lakhs.

g) No Convertible securities have been issued by the company during the period.

h) No calls are unpaid by any Director and officer of the company during the period.

i) The Company has not issued/ allotted any shares pursuant to contract(s) without payment being received in cash during current period and previous three years.

j) The Company has not bought back any shares during current period and previous five years.

k) No equity shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

l) The Company has only one class of issued shares i.e. Ordinary Equity Shares having par value ofRs.10 per share. Each holder of Ordinary Shares is entitled to one vote per share.

Based on the information available with the Company, no creditors have been identified for the Financial Year 22-23, who are registered under the Micro, small and Medium Enterprises Development Act, 2006. Further the Company has not received any claim of interest from any creditors under the said Act.

Note 27 Disclosures under Accounting Standards 27.1 Employee Benefit Plans

Defined Contribution Plans

The Companymakes Provident Fund, ESIC and Gratuity contributions to defined contribution plans for qualifying employees.

The following are the types of defined benefit plans:

a. Gratuity Plan

15 days salary for every completed year of service. Vesting period is 5 years and payment is restricted to Rs. 20 lacs. The present value of defined obligation and related current cost are measured using the Projected Credit Method with actuarial valuation being carried out at each balance sheet date.

b. Risk Exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:

Interest Rates Risk

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase. Thus the plan exposes the Company to the risk of fall in interest rates. Some times, the fall can be permanent, due to a paradigm shift in interest rate scenarios because of economic or fiscal reasons. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements). Even for funded schemes, a paradigm downward shift in bond yields may affect the reinvestment yields and may increase ultimate costs.

Salary Inflation Risk

The present value of the defined benefit plan is calculated with the assumption of salary escalation rate(SER), which is applied to find the salary of plan participants in future, at the time of separation Higher than expected increases in salary will increase the defined benefit obligation and will have an exponential effect.

Demographic Risk

Demographic assumptions are required to assess the timing and probability of a payment taking place. This is the risk of volatility of results due to unexpected nature of decrements that include mortality, attrition, disability and retirement. The effects of this decrement on the DBO depend upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short serving employees will be less compared to long service employees.

Actuarial Risk

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons: Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected. Variability in mortality rates: If actual mortality r ates are higher than assumed mortality rate assumption than the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate. Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

Liquidity Risk

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows.

Asset Liability Mismatch:

This will come into play unless the funds are invested with a term of the assets replicating the term of the liability Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant

changes in the discount rate during the inter-valuation period.

Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

Legislative Risk/Regulatory Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation. The new labour code is a case in point. And the same will have to be recognized immediately in the year when any such amendment is effective.

c. Reconciliation of the net defined benefit (asset)/ liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset)/ liability and its components:

While one of the parameters mentioned above is changed by 100 basis points, Other parameters are kept unchanged for evaluating the DBO While there is no change in the method used for sensitivity analysis from previous period, the change in assumptions now considered are with reference to the current assumptions.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

30 Additional Disclosures

a) The company do not have any Benami property, where any proceeding has been initiated or pending against the

company for holding any Benami Property.

b) The company do not have any transactions with struck off companies under Section 248 of the Companies Act, 2013

or section 560 of Companies Act, 1956.

c) The company do not have any charges or satisfaction which is yet to be registered with Registrarof Companies beyond

the statutory period.

d) The company has not traded or invested in Crypto currency or Virtual currency during the financial year.

e) The Company has not advanced any fund to any person or entity, including foreign entities (Funding Party) with the

understanding (whether recorded in writing or otherwise) that the person or entity shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries); or

ii) provide any guarantee, security or the like on behalf of the Company.

f) The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries); or

ii) provide any guarantee, security or the like on behalf of the Company.

g) The Company do not have any such transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

h) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

31 Wherever the amount represented Rs ''0.00'' construes value less than Rupees Five Hundred.

32 Previous years figures have been regrouped/rearranged where ever found necessary.