Innovatus Entertainment Networks Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2024

2 Significant accounting policies

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply 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. This is the first year of business of the company.

2.2 Depreciation and amortisation

Depreciation has been provided on the WDV method as per the rates prescribed in Schedule XIV to the
Companies Act, 2013

2.3 Revenue recognition

The Company follows accrual method of accounting for all significant items of expenses and income.

2.4 Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of
fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the
date the asset is ready for its intended use and other incidental expenses incurred up to that date.

2.5 Foreign currency transactions and translations

Foreign currency translation in respect of revenue items are stated at actual rates transacted and in
respect of balance sheet items converted at relevant rates as at the end of the accounting year
followed.

2.6 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect
of extraordinary items, if any) by the weighted average number of equity shares outstanding during the
year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax
effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or
income relating to the dilutive potential equity shares, by the weighted average number of equity shares
considered for deriving basic earnings per share.

2.7 Taxes on income

a) In the current Period, no provision for Income Tax is made.

b) The accumulated net deferred tax assets arising on account

of timing differences for the current year has been debited to the profit and loss account.

c) The break-up of net deferred tax asset on account of timing difference as at 31st March, 2022 is
shown in note 13.3