Simca Advertising Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION

The accounting policies adopted in the preparation of financial statements are in
accordance with the Indian Generally Accepted Accounting Principles ("the Indian GAAP"),
applicable Accounting Standards issued by the Institute of Chartered Accountants of India
("the ICAI") and under the historical cost convention, on accrual basis, except for certain
changes which have been disclosed subsequently.

The Financial Statements are presented in Indian Rupees, rounded off to nearest thousand
upto 2 (two) decimal rupees as per the requirement of Schedule III, unless otherwise
stated except Number of Shares details and Per Share Data.

i) Presentation and Disclosure of Financial Statements

The financial statements of the company have been prepared in accordance with the
generally accepted accounting principles in India ("the Indian GAAP"). The company has
prepared these financial statements to comply in all material respects with the accounting
standards notified under Section 133 of the Companies Act, 2013 read with rule 7 of the
Companies (Accounts) Rules, 2014. The financial statements have been prepared on an
accrual basis and under the historical cost convention.

The company has also reclassified/regrouped the previous period figure in accordance
with the requirements applicable in the current period.

ii) Use of Estimates and Judgements

The preparation of financial statements requires the management of the Company to
make estimation and assumptions that effect the reported balances of assets and
liabilities and disclosures relating to the contingent liabilities as at the date of the financial
statements and reported amounts of income and expenses during the period. Examples of
such estimates include provision for loans and advances, provision for accrued benefits to
employees, provision for income tax, provision for write back of diminution in the value of
investment and the useful life of the Property, Plant and Equipment. The estimates and
assumptions used in the accompanying financial statements are based upon
management''s evaluation of the relevant facts and circumstances as of the date of
financial statements. Actual results may differ from those estimates. Any revision to
accounting estimate is recognized prospectively in the current and future periods.

Key source of judgments, assumptions and estimation uncertainty in the preparation of
the Financial Statements which may cause a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are in respect of useful lives of
property, plant and equipment, Intangible Assets, allowance for doubtful debts/advances,
future obligations, impairment, provision for income tax, measurement of deferred tax
assets and contingent assets and liabilities, fair value measurement etc.

iii) Revenue Recognition

Revenue from Sale of Products or Supply of Service is recognized when the significant risks
and rewards of ownership has been transferred in accordance with the sales contract or
otherwise. Revenue from Sale of Product or Service is shown Gross of Goods and Service
Tax (GST) and GST is separately charged and applicable discounts.

Interest income is accounted when the company''s right to receive the interest is
established by the reporting date. Further, Interest Income is included under the head
"Other income" in the Statement of Profit and Loss.

iv) Property, Plant and Equipment;

Property, Plant and Equipment are stated at Cost of Acquisition Less Accumulated
Depreciation, and Impairment Losses, if any. The cost of acquisition is inclusive of duties,
freight and other incidental expenses related to acquisition and installation of the assets.
Subsequent expenditure related to an item of Property, Plant and Equipment is added to
its book value, only if it increases the future benefits from existing asset beyond its
previously assessed standard of performance. Capital work in progress is stated at cost.

The present value of the expected cost for the decommissioning of an Asset after its use is
included in the cost of the respective asset if the recognition criteria for a provision are
met.

Gains or losses arising from disposal of Property, Plant and Equipment''s are measured as
the differences between the net disposal proceeds and carrying amount of asset and are
recognised in the Statement of Profit and Loss when the asset is disposed.

v) Depreciation

The company provides depreciation on Property, Plant and Equipment in the manner
prescribed in schedule II to the Companies Act, 2013 on Written Down Value Method
(WDV), based on prescribed useful life of assets, which are given as under;

Note:

A) Assets costing individually Rs. 5,000/- or less are depreciated at the rate of 100% on
pro-rata basis.

B) Considering the materiality aspect, Residual Value at the rate of 5% of the Cost has
been taken for all the Assets of the Company.

C) Depreciation on Addition and Deletion of Assets on pro rata basis from the day of such
addition or up to the day of such Sale, as the case may be.

D) Depreciation method, useful lives and residual values are reviewed at each financial
year end and adjusted (if necessary).

vi) Investments

Purchase and sale of Investments are recorded on trade date.

Investments are classified into current investments and non-current investments, based
on intention of the Management at the time of purchase for the holding period for which
such investments are made. Investments that are readily realizable and intended to be
held for not more than a year are classified as current investments. All other investments
are classified as non-current investments.

Current investments are carried at lower of cost and market / fair value. The comparison

of cost and net realizable value is done separately in respect of each individual
investment.

Non-current investments (including current portion thereof) are stated at cost. Provision
for diminution is made to recognize a decline, other than that of temporary nature, in the
value of such investments.

vii) Transaction on Foreign Currency

Foreign Currency transactions are accounted for at the rate of exchange prevailing at the
date of the transaction.

Exchange differences, if any, arising out of transactions settled during the year are
recognized in the Statement of the Profit and Loss. Monetary Assets and Liabilities
denominated in foreign currencies as at the Balance Sheet date are translated at the
closing exchange rate. The exchange differences, if any, are recognized in the statement of

Profit and Loss and related Assets and Liabilities are accordingly restated in the Balance
Sheet.

viii) Employee Benefits

Employee benefits payable wholly within twelve months of receiving employee services
are classified as short-term employee benefits. These benefits include salaries and wages,
bonus and ex-gratia payments.

Retirement benefit in the form of provident fund is a defined contribution scheme. The
contributions to the provident fund are charged to the statement of profit and loss for the
year when the contributions are due. The company has no obligation, other than the
contribution payable to the provident fund.

Provisions on account of Gratuity and Leave Encashment of eligible employees are made
based on the actuarial valuation done at the year end.

ix) Earning Per Share

Basic and Diluted Earning per share are calculated and reported in accordance with
Accounting Standard 20 ''Earning Per Share'' issued by the ICAI. Basic and Diluted Earnings
per share has been computed by dividing net profit after tax by weighted average number
of equity shares outstanding for the period except when the results would be anti-dilutive.

x) Income Taxes

Income tax is accrued in accordance with Accounting Standard 22 ''Accounting for Taxes on
Income'' issued by the ICAI, which includes Current and Deferred Taxes.

Income tax comprises the current tax provision and the net change in the deferred tax
asset or liability in the year. Current income-tax is measured at the amount expected to be
paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India

and tax laws prevailing in the respective tax jurisdictions where the company operates.
The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.

Deferred tax assets and liabilities are recognized for the future tax consequences of timing
differences between the carrying values of the assets and liabilities and their respective
tax bases. Deferred Tax assets are recognized and carried forward to the extent that there
is reasonable / virtual certainty (as applicable) that sufficient future taxable income will be
available against which such deferred tax asset can be realized. Deferred tax assets and
liabilities are measured using substantively enacted tax rates applicable on the Balance
Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is
recognized in the income statement in the period of enactment of the change.

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 tax assets
and deferred taxes relate to the same taxable entity and the same taxation authority.