1. Material Accounting Policies
Basis of Measurement
The Financial Statements of the company are consistently prepared and presented under historical cost convention on an accrued
basis in accordance with IND AS except for certain Financial Assets and Financial Liabilities that are measured at fair value.
The financial statements are presented in Indian Rupees ('INR'), which is the Company's functional and presentation currency and all
amounts are rounded to the nearest Lacs (except otherwise indicated).
1. Property, plant and equipment
"(i) Property, plant and equipment situated in India comprising of Plant & Machinery are stated at fair Value and subsequently the
company uses revaluation model for plant & machinery as per Ind AS-16
In respect of other assets, the company has elected to value the assets at historical cost and uses cost model as per Ind AS-16. The
cost of Tangible assets comprises its purchase price, borrowing cost, any other cost directly attributable to bringing the assets into
present location and condition necessary for it to be capable of operating in the manner intended by the management, initial estimation
of any de - commissioning obilgations and finance cost."
"(ii) Depreciation
Depreciation on Fixed Assets is provided on Straight Line Method over their useful lives and in the manner specified in Schedu le II of
the Companies Act, 2013."
Depreciation on Fixed Asses is provided on Straight Line Method over their useful lives and in the manner specified in Schedule II of
the Companies Act,2013. Property, Plant & Equipment which are added/disposed off during the year the depreciation is provided on pro
rata basis with reference to month of addition/deletion.
(iii) Component Accounting
When significant parts of property, plant and equipment are required to be replaced at intervals, the Company derecognizes the
replaced part, and recognizes the new part with its own associated useful life and it is depreciated accordingly. 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. The present
value of the expected cost for the decommissioning of the asset after its use is included in the cost of the respective asset if the
recognition criteria for a provision are met.
(iv) Expenditure during construction/erection period is included under Capital Work-in-Progress and is allocated to the respective fixed
assets on completion of construction/ erection.
(v) Property, plant and equipment are eliminated from financial statement, either on disposal or when retired from active use. Losses
arising in the case of retirement of Property, plant and equipment and gains or losses arising from disposal of property, plant and
equipment are recognized in Statement of Profit and Loss in the year of occurrence.
(vi) The assets” residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted
prospectively, if appropriate.
2. Intangible assets:
(i) Intangibles assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to
the Company and the cost of the asset can be measured reliably. Intangible Assets are stated at cost which includes any directly
attributable expenditure on making the asset ready for its intended use. Intangible assets with finite useful lives are capita lized at cost
and amortized on a straight-line basis over a period of 10 years.
"(ii) Software:- Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related
expenditure is reflected in profit and loss in the period in which the expenditure is incurred.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of
each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in
accounting estimates. Intangibles assets with indefinite useful lives (like goodwill, brands), if any are not amortised, but are tested for
impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite useful life is reviewed annually
to determine whether indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite li fe is made on
prospective basis."
3. Inventories:
a) T raded goods consist of Set up Boxes are valued at lower of cost (on a first in first out basis) and net realisable value.
4. Cash and cash equivalents:
a) Cash and cash equivalents are financial assets. Cash and cash equivalents consist of cash and short-term highly liquid investments
that are readily convertible to cash with original maturities of three months or less at the time of purchase and are carried at cost plus
accrued interest.
b) Cash Flow Statement
Cash Flow are reported using indirect method, whereby profit for the year is adjusted for 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. The cash flows from operating, investing, and financing activities of the company are segregated.
c) Bank Balances Other than above
Dividend Escrow account balance, deposit with bank as margin money for guarantees issued by bank, deposits kept as security deposit
for statutory authorities are accounted as bank balance other than cash and cash equivalent.
5. Financial instruments:
A financial instrument is any contract that at the same time gives rise to a financial asset of one entity and a financial liabi lity or equity
instrument of another entity. Financial instruments are recognized as soon as the company becomes a contracting party to the financial
instrument. In cases where trade date and settlement date do not coincide, for non-derivative financial instruments the settlement date
is used for initial recognition or derecognition, while for derivatives the trade date is used. Financial instruments stated as financial
assets or financial liabilities are generally not offset; they are only offset when a legal right to set-off exists at that time and settlement
on a net basis is intended.
A. Financial assets:
Financial assets include trade receivable, cash and cash equivalents, equity / debt instruments held. Initially all financial assets are
recognised at amortised cost or fair value through Other Comprehensive Income or fair value through Statement of Profit or Los s,
depending on its business model for those financial assets and their contractual cash flow characteristics. Subsequently, based on
initial recognition/ classification, where assets are measured at fair value, gain and losses are either recognised entirely in the
statement of profit and loss (i.e. fair value through profit or loss), or recognised in other comprehensive income (i.e. fair v alue through
other comprehensive income).
(a) Trade receivables:
Trade receivables are recognised initially at fair value and subsequently measured at amortized cost less credit loss/impairment
allowances.
Impairment is made on the expected credit loss model, which are the present value of the cash deficits over the expected life of
receivables. The estimated impairment losses are recognised in the Statement of Profit and Loss. Subsequent changes in assessment
of impairment are recognized in the Statement of Profit and Loss as changes in estimates.
The company makes provision for expected credit loss against trade receivables based on the simplified approach (i.e. the loss
allowance is measured as the amount equal to lifetime expected credit losses).
(b) Loans & other financial assets
Loans and other financial assets are financial assets with fixed or determinable payments that are not quoted in an active market. Such
assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and
other financial assets are measured at amortized cost using the effective interest method, less any impairment losses.
(c) Investment in equity shares:
Investment in equity securities are initially measured at fair value. Any subsequent fair value gain or loss for investments held for
investment is recognized through Other Comprehensive Income. Any subsequent gain or loss for investment held for trading are
recognized through Statement of Profit and Loss.
(d) Investment in associates, joint venture and subsidiaries:
The Company's investment in subsidiaries and associates, joint venture / LLP are carried at fair value and any appreciation or
impairment is recognised in financial statement through OCI.
B. Financial liabilities:
Financial liabilities such as loans and borrowings and other payables are recognized initially on the trade date, which is the date that the
Company becomes a party to the contractual terms of the instrument. Financial liabilities other than fair valued through profi t and loss
are recognized initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, t hese financial
liabilities are measured at amortized cost using the effective interest method. Transaction costs of financial liability carried at fair value
through profit or loss is expensed in profit or loss. The Company derecognizes a financial liability when its contractual obliga tions are
settled or cancelled or expired.
Financial liabilities at fair value through profit or loss:
It includes financial liabilities held for trading and are designated such at initial recognition. Financial liabilities are held for trad ing if they
are incurred for the purpose of repurchasing in near term and also include Derivatives that are not part of an effective hedge accounting
in accordance with IND AS 109, classified as “held for trading” and carried at fair value through profit or loss. Financial liabilities at fair
value through profit or loss are measured at each reporting date at fair value with all the changes recognized in the Statement of Profit
and Loss.
Financial liabilities measured at amortised cost
Post recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate
method ("EIR"). Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are an
integral part of the EIR. The EIR amortisation is included in finance costs in the Statement of Profit and Loss.
Loans and Borrowings
After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using the effective interest method.
Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the
period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as
transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.
Trade and other payables:
A payable is classified as 'trade payable' if it is in respect of the amount due on account of goods purchased or services rec eived in the
normal course of business. Trade accounts payable and other non-derivative financial liabilities are in general measured at amortized
cost using the effective interest method. Finance charges, including premiums payable on redemption or settlement, are periodically
accrued using the effective interest method and increase the liabilities' carrying amounts unless they have already been settled in the
period in which they were incurred.
(C) Impairment of non-financial assets:
At each reporting date, the company assesses whether there is any indication that a non-financial asset may be impaired. If any such
indication exists, the recoverable amount of the non-financial asset is estimated in order to determine the extent of the impairment loss,
if any. Recoverable amount is determined:
• In the case of an individual asset, at the higher of the Fair Value less cost to sell and the value in use: and
• In the case of cash generating unit (a group of assets that generates identified, independent cash flows) at the higher of cash
generating unit's fair value less cost to sell and the value in use.
Where it is not possible to estimate the recoverable amount of an individual non-financial asset, the company estimates the recoverable
amount of the smallest cash generating unit to which the non-financial asset belongs. The recoverable amount is the higher of an
asset's or cash generating unit's fair value less costs of disposal and its value in use. If the recoverable amount of a non-financial asset
or cash generating unit is estimated to be less than its carrying amount, the carrying amount of the non-financial asset or cash
generating unit is reduced to its recoverable amount. Impairment losses are recognized immediately in the statement of Profit and Loss.
Where an impairment loss subsequently reverses, the carrying amount of the non-financial asset or cash generating unit is increased to
the revised estimate of its recoverable amount. However, this increased amount cannot exceed the carrying amount that would have
been determined had no impairment loss been recognized for that non-financial asset or cash generating unit in prior periods. A
reversal of an impairment loss is recognized immediately in the statement of Profit and Loss.
(D) Revenue recognition:
The company derives revenue from carriage fees, time and space selling, and income from LCO. In accordance with Ind AS 115, the
company recognises revenue from services at a time when performance obligation is satisfied and upon transfer of control of promised
services to customer in an amount that reflects the consideration the company expects to receive in exchange for their services. The
company disaggregates the revenue based on nature of services/Geography.
(E) Employees Benefits:
(a) Short term employee Benefit:
All employees' benefits payable wholly within twelve months rendering services are classified as short term employee benefits.
Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the expected cost of bonus, ex-
gratia are recognized during the period in which the employee renders related service.
(b) Defined Contribution Plan:
Contributions to the Employees' Provident Fund and Employee's State Insurance are recognized as Defined Contribution Plan and
charged as expenses in the year in which the employees render the services.
(c) Defined Benefit Plan (Unfunded):
The Leave Encashment and Gratuity are defined benefit plans. The cost of providing benefits under the defined benefit plan is
determined using the projected unit credit method with actuarial valuations being carried out at each balance sheet date, which
recognises each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to
build up the final obligation. Re-measurements, comprising of actuarial gains and losses, excluding amounts included in net interest on
the net defined benefit liability, are recognized immediately in the balance sheet with a corresponding debit or credit to retained
earnings through other comprehensive income in the period in which they occur. Re-measurements are not classified to the statement
of profit and loss in subsequent periods. Past Service cost is recognised in the statement of profit
and loss in the period of plan amendment. Net Interest is calculated by applying the discount rate to the net defined benefit l iability or
asset.
The Company recognises the following changes in the net defined benefit obligation under employee benefit expenses in the statem ent
of profit and loss.
• Service costs comprising current service costs, gains and losses on curtailments and non-routine Settlements.
• Net interest income or expense.
(d) Long term Employee Benefit:
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee
renders the related services are recognised as a liability at the present value of the defined benefit obligation at the balance sheet date.
(e) Termination benefits:
Termination benefits are recognised as an expense in the period in which they are incurred.
The Company shall recognize a liability and expense for termination benefits at the earlier of the following dates:
(a) when the entity can no longer withdraw the offer of those benefits; and
(b) when the entity recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of termination
benefits.
(F) Borrowing costs:
(a) Borrowing costs that are specifically attributable to the acquisition, construction, or production of a qualifying asset are capitalised as
a part of the cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that
necessarily requires a substantial period of time to get ready for its intended use or sale.
(b) For general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalization
is determined by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the weighted average of the
borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than borrowings made
specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalized during a period does n ot exceed
the amount of borrowing cost incurred during that period.
(c) All other borrowing costs are recognised as expense in the period in which they are incurred.
(G) Leases:
In accordance with IND AS 116, the Company recognizes right of use assets representing its right to use the underlying asset for the
lease term at the lease commencement date. The cost of right of use asset measured at inception shall comprise of the amount of the
initial measurement of the leave liability adjusted for any lease payment made at or before commencement date less any lease
incentive received plus any initial direct cost incurred and an estimate of cost to be incurred by lessee in dismentling and removing
underlying asset or restoring the underlying asset or site on which it is located. The right of use asset is subsequently measured at cost
less accumulated depreciation, accumulated impairment lossess, if any, and adjusted for any remeasurement of lease liability. The
right of use assets is depreciated using the straight line method from the commencement date over the shorter of lease term or useful
life of right of use asset. The estimated useful lives of right of use assets are determined on the same basis as those of property, plant
and equipment. Right of use assets are tested for impairment whenever there is any indication that their carrying amounts may not be
recoverable, Impairment loss, if any, is recognized in statement of profit and loss. The Company measures the lease liability at the
present value of the lease payments that are not paid at the commencement date of lease. The lease payments are discounted using
the interest rate implicit in the lease, if that rate can be readily determined, the Company uses incremental borrowing rate.
The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on lease liability, reducing the
carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease
modification or to reflect revised-in-substance fixed lease payments, the company recognizes amount of remeasurement of lease
liability due to modification as an adjustment to right of use assets and statement of profit and loss depending upon the nature of
modification. Where the carrying amount of right of use assets is reduced to zero and there is further reduction in measurement of
lease liability, the Company recognizes any remaining amount of the remeasurement in statement of profit and loss.
The Company has elected not to apply the requirements of IND AS 116 to short term leases of all assets that have a lease term of
twelve month or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are
recognized as an expense over lease term.
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception
date, whether fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to
use the asset, even if that right is not explicitly specified in an arrangement.
(H) Taxes on income:
Income Tax expenses comprise current tax expenses and the net change in the deferred tax asset or liabilities during the year. Current
and Deferred tax are recognised in Statement of Profit and Loss, except when they relate to items that are recognised in Other
Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognised in Other Comprehensive
Income or directly in equity respectively.
Current Tax
The Company provides current tax based on the provisions of the Income Tax Act, 1961 applicable to the Company.
Deferred Tax
"Deferred tax is recognised using the Balance Sheet approach. Deferred tax assets and liabilities are recognised for deductible and
taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount.
Deferred tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognized deferred tax assets
are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow
the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or
liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current
tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority."
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