అకౌంట్స్ గమనికలుSimca Advertising Ltd.

Mar 31, 2025

xi) Other Provisions and Contingencies

A contingent liability exists when there is a possible but not probable obligation, or a
present obligation that may, but probably will not, require an outflow of resources, or a
present obligation whose amount cannot be estimated reliably. Contingent liabilities do
not warrant provisions, but are disclosed unless the possibility of outflow of resources is
remote. Contingent assets are neither recognized nor disclosed in the financial
statements. However, contingent assets are assessed continually and if it is virtually
certain that an inflow of economic benefits will arise, the asset and related income are
recognized in the period in which the change occurs.

The Company creates a provision when there is present obligation as a result of a past
event that probably requires an outflow of resources and a reliable estimate can be made
of the amount of the obligation. The provisions are measured on an undiscounted basis.
When there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent liabilities where an estimate of its financial effect is measurable and indication
of the uncertainties relating to any outflow and the possibility of any reimbursement are
disclosed by way of Notes in the Balance Sheet as per Accounting Standard 29, ''Provisions,
Contingent Liabilities and Contingent Assets''.

Provision is made in accounts for those liabilities, which are likely to materialize after the
period end and having effect on the position stated in Balance Sheet as at the end of the
period.

xii) Impairment of Assets

At each balance sheet date, the management reviews the carrying amounts of assets to
determine whether there is any indication that those assets were impaired. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine
the extent of impairment loss. Recoverable amount is higher of an asset''s net selling price
and the value in use. In assessing value in use, the estimated future cash flows expected
from the continuing use of the asset and from its disposal are discounted to their present
value using a pre-tax discount rate that reflects the current market assessments of time
value of money and the risks specific to the asset.

Reversal of impairment loss is recognized immediately as income in the statement of the
Profit and Loss.

xiii) Dividend

Provision is made for the amount of any dividend declared on or before the end of the
reporting period but remaining undistributed at the end of the reporting period, where
the same has been appropriately authorised and is no longer at the discretion of the
entity.

xiv) Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost. Such cost
includes purchase price, borrowing cost, and cost directly attributable to brining the asset
to its working condition for the intended use. Thereafter intangible assets are carried at
cost less any accumulated amortization and accumulated impairment losses.

Subsequent expenditure is capitalised only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other expenditure is recognised in
the Statement of Profit and Loss as incurred.

Amortisation is calculated to write off the cost of intangible assets less their estimated
residual values over their estimated useful lives using the Written Down Value (WDV)
method, and is included in depreciation and amortisation in the Statement of Profit and
Loss. Software is amortised over a period of 3 years on WDV method on pro-rata basis.
Amortisation method, useful lives and residual values are reviewed at the end of each
financial year and adjusted, if required.

Intangible assets are derecognised on disposal or when no future economic benefits are
expected to arise from its continuous use, and the resultant gains or losses are recognised
in the Statement of Profit and Loss.

Intangible assets not ready for the intended use on the date of the Balance Sheet are
disclosed as ''intangible assets under development''.

xv) 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.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash
and short-term deposits, as defined above, net of outstanding bank overdrafts as they are
considered an integral part of the Company''s cash management.

26. Segment Reporting

The Company is primarily engaged in providing Services of Outdoor Media Advertising
including Vinyl Printing and Mounting. Hence there are no other "Reportable Segments"
as per the definition contained in the Accounting Standard on "Segment Reporting" (AS—
17) issued by the ICAI.

27. The Cash Flow Statement has been prepared under the Indirect Method set out in
Accounting Standard 3 on ''Cash Flow Statements'' and the relevant provisions of
Companies Act, 2013.

28. Depreciation

Depreciation is provided based on useful life of the Assets as prescribed in Schedule II of
Companies Act 2013 under the WDV Method for the Current Year amounting to Rs
1,278.25/- (in Thousand).

29. RELATED PARTY TRANSACTION

In terms of Indian Accounting Standard 24 ''Related Party Transactions'', the Company
has entered into transactions with the following related parties in the ordinary courses
of business.

* The Amount of Rs. 2,819.10 (in thousand) is re-payable to the ICICI Bank for the Car Loan.
However, the Company will Pay to its MD who in turn will re-pay to ICICI bank. For more details,
please refer remark given under Note No 5.

30. Earnings Per Share

Earnings per share are computed in accordance with the Accounting Standard 20 issued
by the ICAI. For details, please, refer Statement of Profit and Loss however, Calculation
of Weighted Average Number of Equity Shares for the FY 2024-25 is given below;

*As per Para 24 of AS -20: In case of a bonus issue or a share split, equity shares are issued to
existing shareholders for no additional consideration. Therefore, the number of equity shares
outstanding is increased without an increase in resources. The number of equity shares
outstanding before the event is adjusted for the proportionate change in the number of equity
shares outstanding as if the event had occurred at the beginning of the earliest period reported.

Accordingly, the Company has restated the number of equity shares for all periods presented as
if the share split and subsequent consolidation had occurred at the beginning of the financial
year. This ensures that the earnings per share remain comparable and are not distorted by
capital structure changes that do not affect the economic resources of the Company.

The EPS for the year ended 31-Mar-2024 has not been restated, as the number of equity shares
outstanding then was the same as the restated number after current year''s share split and
consolidation. EPS for both periods is thus comparable in accordance with AS 20.

31. Gratuity and other Post-Employment Benefit Plans

The Company has an Unfunded Defined Benefit Gratuity Plan, which is administered in-
house as approved by the Board of Directors. The Company provides for the Gratuity
Liabilities for its employees as per the provision of Payment of Gratuity Act, 1972. The

Employees who are in continuous service for a period of 5 years or more are eligible for
the Gratuity. The amount of gratuity is payable on retirement/termination of the
employee''s based on last drawn basic salary per month computed proportionately for
15 days salary multiplied for the completed number of years of service. The Company
makes provision of such Gratuity Liability in the books of accounts on the basis of
Actuarial Valuation as per the Projected Unit Credit Method.

Details of the Gratuity is as under;

The following disclosures have been made in accordance with the Accounting Standard
15 - Employee Benefits;

• The plan is internally managed and not through an external insurer.

• The Company has not earmarked specific plan assets towards gratuity obligations.

• The Company ensures adequate provisioning is made in its books for the Gratuity
obligation.

• The Company had recognized the Provision for the Gratuity for the Financial Year
2022-23 and 2023-24 on 01/04/2024 as per the Actuarial Report.

32. Taxation

Provision for Tax has been computed as per the provision of Income Tax Act, 1961.

33. Deferred Tax

In compliance with the Accounting Standard on ''Accounting for Taxes on Income'' (AS-
22) issued by the 1CAI, the company has recognized a Net Deferred Tax Liability/(Assets)
of (Rs. 113.22/-) (in thousand) in the Statement of Profit and Loss. The details are
provided in Note No. 06.

34. Corporate Social Responsibility (CSR)

Pursuant to the section 135 of the Companies Act, 2013, the Company is required to

spend at least 2% of the Average Net Profits of the preceding three financial years on
CSR activities. Since the Company is in its third year of operations, the average net profit
has been computed based on the profits of the two immediately preceding financial
years that is Financial Year 2022-23 and FY 2023-24.

Accordingly, for the financial year ended 31^st March 2025, the Company''s CSR obligation
amounted to Rs. 672.22 (in thousand). During the year, the Company has fulfilled its CSR
obligation by contributing the entire amount to Hashimi Public Charitable Trust
CSR00009539, an eligible implementing agency, for carrying out educational activities in
accordance with Schedule VII of the Companies Act, 2013. Hence, there are no unspent
amounts requiring transfer to any fund specified in Schedule VII.

35. Details of Loans / guarantees given, investment made and securities provided covered
u/s 186 of the Companies Act 2013:

The Company has not granted any loan or given any guarantee or made any investment
or provided any security during the year covered under the provision of the Section 186
of the Companies Act 2013.

36. Dues to Micro, Small and Medium Enterprises;

Trade payables do not include any amount payable to Micro, Small and Medium
Enterprises. Under the Micro, Small and Medium Enterprises Development Act, 2006,
(MSMEDA) which came into force from October 02, 2006, certain disclosures are

required to be made relating to Micro, Small and Medium enterprises. On the basis of
the information and records available with the management, the following disclosures
are made for the amounts due to the Micro, Small and Medium enterprises, who have
registered with the competent authority.

37. Balances of Debtors, Creditors and Unsecured Loans are subject to confirmation.

38. information with regard to the additional information specified in paragraph 5 (ii), 5(iii),
5(v) of part II of Schedule III to the Companies Act, 2013 are already provided by way of

Notes in the financial statements.

Further, paragraph 5(iv), 5(vii) (a) (b) and 5{viii) (a) (b) (c) (d) of part II of Schedule III to
the Companies Act, 2013 either nil or not applicable to the company for the year ended

31st March 2025.