Click it and Unblock the Notifications
Accounting Policies of Cyber Media (India) Ltd. Company
Mar 31, 2025
2. Material Accounting Policies
A summary of basis of preparation and Material accounting policies adopted in the preparation of these financial statements are
as given below. These bases of preparation and accounting policies have been applied consistently to all periods presented in the
financial statements.
2.1 Statement of Compliance
These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred
to as âInd ASâ) as prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting
Standards) Rules 2015 as amended from time to time and other accounting principles generally accepted in India.
2.2 Basis of preparation and presentation
The Financial Statements are prepared on the historical cost basis except for certain financial instruments that are measured
at fair values at the end of each reporting period, as explained in the accounting policies below.
Unless otherwise stated, all amounts are stated in Lakhs of Rupees.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. All assets and liabilities have been classified as current and non-current as per
the Companyâs normal operating cycle. Based on the nature of services rendered to customers and time elapsed between
deployment of resources and the realisation in cash and cash equivalents of the consideration for such services rendered, the
Company has considered an operating cycle of 12 months.
In addition, for financial reporting purposes fair value measurements are categorised into Level 1, 2 or 3 based on the
degree to which the inputs for the fair value measurements are observable and the significance of the inputs to the fair value
measurements in its entirety, which are described as follows:
a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
b) Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1
for the asset or liability.
c) Level 3 inputs are unobservable inputs for the asset or liability.
2.3 Use of Estimates
The preparation of financial statements requires management to make judgments, estimates and assumptions that may
impact the application of accounting policies and the reported value of assets, liabilities, income, expenses and related
disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. The estimates
and managementâs judgments are based on previous experience & other factors considered reasonable and prudent in the
circumstances. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimates are revised and in any future periods affected.
In order to enhance understanding of the financial statements, information about material areas of estimation, uncertainty and
critical judgments in applying accounting policies that have the most material effect on the amounts recognized in the financial
statements is as under:
1. Formulation of accounting policies
The accounting policies are formulated in a manner that results in financial statements containing relevant and reliable
information about the transactions, other events and conditions to which they apply. Those policies need not be applied
when the effect of applying them is immaterial.
2. Post-employment benefit plans
Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal
rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the
inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate and
documented. However, any changes in these assumptions may have a material impact on the resulting calculations.
3. Provisions and contingencies
The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS
37 âProvisions, contingent liabilities and contingent assetsâ. The evaluation of the likelihood of the contingent events has
required best judgment by management regarding the probability of exposure to potential loss. Should circumstances
change following unforeseeable developments, this likelihood could alter.
4. Income taxes
Material estimates are involved in determining the provision for income taxes, including amount expected to be paid/
recovered for uncertain tax positions.
2.4 Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer
and complete satisfaction of all performance obligations. Revenue is measured at the amount of consideration which the
Company expects to be entitled to in exchange for transferring distinct goods or services to a customer as specified in the
contract, excluding amounts collected on behalf of third parties (for example taxes and duties collected on behalf of the
government). Consideration is generally due upon satisfaction of performance obligations and a receivable is recognised
when it becomes unconditional.
If at the time of rendering of services or sales there is material uncertainty in Ultimate collection of the revenue, then the revenue
recognition is postponed and in such Cases revenue is recognized only when it becomes reasonably certain that ultimate
collection will be made. When the uncertainty of collection of revenue arises subsequently after the revenue recognition,
provision for the uncertainty in the collection is made rather than adjustment in revenue already recognized. Dividend income
is recognized when right to receive is established. Interest Income is recognized on time proportion basis taking in to account
the amount outstanding and rate applicable based on effective interest method.
2.5 Property, Plant and Equipment (PPE)
Property, plant and equipment (PPE) are carried at cost less accumulated depreciation and impairment losses, if any.
The cost of Property, plant and equipment (PPE) comprises its purchase price net of any trade discounts and rebates, any
import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable
expenditure on making the asset ready for its intended use, other incidental expenses, present value of decommissioning
costs (where there is a legal or constructive obligation to decommission) and interest on borrowings attributable to acquisition
of qualifying fixed assets up to the date the asset is ready for its intended use. Property, plant and equipment are tested for
impairment whenever events or changes in circumstances indicate that an asset may be impaired. If an impairment loss
is determined, the remaining useful life of the asset is also subject to adjustment. If the reasons for previously recognised
impairment losses no longer exist, such impairment losses are reversed and recognised in income. Such reversal shall
not cause the carrying amount to exceed the amount that would have resulted had no impairment taken place during the
preceding periods.
Depreciation
Depreciation is provided for Property, Plant and Equipment so as to expense the cost less residual values over their estimated
useful lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting
period. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.
Gains and losses arising from Derecognition of Property, Plant and Equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the
asset is derecognised.
Amortization of Intangible assets
Intangible assets are amortized on a straight-line basis over the estimated useful economic life. The amortization period and
the amortization method are reviewed at each financial year end. If the expected useful life of the asset is significantly different
from the previous estimate, the amortization period is changed accordingly.
The useful lives of intangible assets are assessed as either definite or indefinite. Intangible assets are tested for impairment
at the end of each reporting period.
Softwares are amortised over the life of the software or 5 years, whichever is lower
2.6 Inventory
Inventory of newsprint, goods in transit are stated at cost or net realisable value, whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost
formulae used are âFirst in First Outâ, âAverage costâ, or âSpecific Identificationâ, as applicable. Due allowance is estimated and
made for defective and obsolete items, wherever necessary, based on the past experience of the Company.
2.7 Taxation
Income tax expense represents the sum of tax currently payable and deferred tax.
2.7.1 Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported
in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years
and items that are never taxable or deductible.
Current tax is determined on the basis of taxable income and tax credits computed for Company, in accordance with
the applicable tax rates and the provisions of applicable tax laws applicable to Company in the respective jurisdiction in
which it operates.
Advance taxes and provisions for current income taxes are presented in the Balance sheet after off-setting advance tax
paid and income tax provision arising in the same tax jurisdiction and where the relevant taxpaying units intends to settle
the asset and liability on a net basis.
2.7.2 Deferred Tax
Deferred tax assets and liabilities are measured using the enacted/substantively enacted tax rates and laws for continuing
operations. Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it
is probable that future taxable amounts will be available to utilize those temporary differences and losses. The carrying
amount of deferred tax assets is reviewed at each balance sheet date to reassess realisation.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or 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.
2.8 Employee Benefits
Defined contribution plan
A Defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions in respect
of the employees into an independent fund administrated by the government/ pension fund manager and will have no legal
or constructive obligation to pay further amounts after its payment of the fixed contribution. Obligations for contributions to
defined contribution plans are recognized as an employee benefit expense in statement of profit and loss in the period during
which services are rendered by employees.
The company has a defined contribution plan which includes pension scheme and provident fund scheme. Companyâs
contribution towards provident fund and pension scheme for the year are recognised as an expense and charged to the
statement of profit and loss.
Defined benefit plan
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The companyâs liability
towards gratuity and post-retirement benefits such as medical benefits are in the nature of defined benefits plans.
The companyâs net obligation in respect of defined benefit plans is determined using the projected unit credit method, with
actuarial valuations being carried out at the end of reporting period. Actuarial gain/loss on re-measurement of gratuity and
other post-employment defined plans are recognised in other comprehensive income (OCI). Past service cost is recognised
in the statement of Profit and Loss account in the period of a plan amendment.
Other long-term employee benefits
The companyâs obligation towards leave encashment is in the nature of other long term employee benefits. Liability in respect
of compensated absences becoming due or expected to be availed more than one year after the balance sheet date.
Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to statement of
profit and loss in the period in which such gains or losses are determined.
Short-term employee benefits
Short term employee benefits such as salaries and wages are recognised on undiscounted basis in the statement of Profit and
Loss account, on the basis of the amount paid or payable for the period during which services are rendered by the employee.
Mar 31, 2024
1. Corporate Information
Cyber Media (India) Limited is a public limited company incorporated under Indian Companies Act, 1956, having its registered office at D - 74, Panchsheel Enclave, New Delhi - 110017 and Corporate Office at B - 35, Sector 32, Gurugram - 122003, Haryana. The Company is the largest speciality media house in South Asia and amongst Indiaâs top five magazine brands. The media business includes several media properties such as Dataquest, PC Quest, Voice & Data, DQ Channels and DQ Week(s). The Company has several websites led by www.CIOL.com, Indiaâs largest technology business website. Over the past three decades, the Company has continued to be the torch bearer for technology business, knowledge and information for Indiaâs growing industry needs.
2. Material Accounting Policies
A summary of basis of preparation and Material accounting policies adopted in the preparation of these financial statements are as given below. These bases of preparation and accounting policies have been applied consistently to all periods presented in the financial statements.
These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as âInd ASâ) as prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules 2015 as amended from time to time and other accounting principles generally accepted in India.
2.2 Basis of preparation and presentation
The Financial Statements are prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
Unless otherwise stated, all amounts are stated in Lakhs of Rupees.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and liabilities have been classified as current and non-current as per the Companyâs normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realisation in cash and cash equivalents of the consideration for such services rendered, the Company has considered an operating cycle of 12 months.
In addition, for financial reporting purposes fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs for the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows:
a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
b) Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1 for the asset or liability.
c) Level 3 inputs are unobservable inputs for the asset or liability.
The preparation of financial statements requires management to make judgments, estimates and assumptions that may impact the application of accounting policies and the reported value of assets, liabilities, income, expenses and related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. The estimates and managementâs judgments are based on previous experience & other factors considered reasonable and prudent in the circumstances. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
In order to enhance understanding of the financial statements, information about material areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most material effect on the amounts recognized in the financial statements is as under:
1. Formulation of accounting policies
The accounting policies are formulated in a manner that results in financial statements containing relevant and reliable information about the transactions, other events and conditions to which they apply. Those policies need not be applied when the effect of applying them is immaterial.
2. Post-employment benefit plans
Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate and documented. However, any changes in these assumptions may have a material impact on the resulting calculations.
3. Provisions and contingencies
The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37 âProvisions, contingent liabilities and contingent assetsâ. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss. Should circumstances change following unforeseeable developments, this likelihood could alter.
d) Income taxes
Material estimates are involved in determining the provision for income taxes, including amount expected to be paid/ recovered for uncertain tax positions.
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer and complete satisfaction of all performance obligations. Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct goods or services to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes and duties collected on behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a receivable is recognised when it becomes unconditional.
If at the time of rendering of services or sales there is material uncertainty in Ultimate collection of the revenue, then the revenue recognition is postponed and in such Cases revenue is recognized only when it becomes reasonably certain that ultimate collection will be made. When the uncertainty of collection of revenue arises subsequently after the revenue recognition, provision for the uncertainty in the collection is made rather than adjustment in revenue already recognized. Dividend income is recognized when right to receive is established. Interest Income is recognized on time proportion basis taking in to account the amount outstanding and rate applicable based on effective interest method.
2.5 Property, Plant and Equipment (PPE)
Property, plant and equipment (PPE) are carried at cost less accumulated depreciation and impairment losses, if any.
The cost of Property, plant and equipment (PPE) comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses, present value of decommissioning costs (where there is a legal or constructive obligation to decommission) and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use. Property, plant and equipment are tested for impairment whenever events or changes in circumstances indicate that an asset may be impaired. If an impairment loss is determined, the remaining useful life of the asset is also subject to adjustment. If the reasons for previously recognised impairment losses no longer exist, such impairment losses are reversed and recognised in income. Such reversal shall not cause the carrying amount to exceed the amount that would have resulted had no impairment taken place during the preceding periods.
Depreciation is provided for Property, Plant and Equipment so as to expense the cost less residual values over their estimated useful lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:
|
Category |
Useful Life |
|
Office equipment |
5 years |
|
Furniture and fixture |
10 years |
|
Computers |
3 years |
|
Building |
60 years |
|
Vehicle |
8 Years |
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Gains and losses arising from Derecognition of Property, Plant and Equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognised.
Amortization of Intangible assets
Intangible assets are amortized on a straight-line basis over the estimated useful economic life. The amortization period and the amortization method are reviewed at each financial year end. If the expected useful life of the asset is significantly different from the previous estimate, the amortization period is changed accordingly.
The useful lives of intangible assets are assessed as either definite or indefinite. Intangible assets are tested for impairment at the end of each reporting period.
Softwares are amortised over the life of the software or 5 years, whichever is lower
Inventory of newsprint, goods in transit are stated at cost or net realisable value, whichever is lower. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost formulae used are âFirst in First Outâ, âAverage costâ, or âSpecific Identificationâ, as applicable. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company.
Income tax expense represents the sum of tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.
Current tax is determined on the basis of taxable income and tax credits computed for Company, in accordance with the applicable tax rates and the provisions of applicable tax laws applicable to Company in the respective jurisdiction in which it operates.
Advance taxes and provisions for current income taxes are presented in the Balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant taxpaying units intends to settle the asset and liability on a net basis.
Deferred tax assets and liabilities are measured using the enacted/substantively enacted tax rates and laws for continuing operations. Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. The carrying amount of deferred tax assets is reviewed at each balance sheet date to reassess realisation.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or 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.
2.8 Employee Benefits Defined contribution plan
A Defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions in respect of the employees into an independent fund administrated by the government/ pension fund manager and will have no legal or constructive obligation to pay further amounts after its payment of the fixed contribution. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in statement of profit and loss in the period during which services are rendered by employees.
The company has a defined contribution plan which includes pension scheme and provident fund scheme. Companyâs contribution towards provident fund and pension scheme for the year are recognised as an expense and charged to the statement of profit and loss.
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The companyâs liability towards gratuity and post-retirement benefits such as medical benefits are in the nature of defined benefits plans.
The companyâs net obligation in respect of defined benefit plans is determined using the projected unit credit method, with actuarial valuations being carried out at the end of reporting period. Actuarial gain/loss on re-measurement of gratuity and other post-employment defined plans are recognised in other comprehensive income (OCI). Past service cost is recognised in the statement of Profit and Loss account in the period of a plan amendment.
Other long-term employee benefits
The companyâs obligation towards leave encashment is in the nature of other long term employee benefits. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date.
Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to statement of profit and loss in the period in which such gains or losses are determined.
Short-term employee benefits
Short term employee benefits such as salaries and wages are recognised on undiscounted basis in the statement of Profit and Loss account, on the basis of the amount paid or payable for the period during which services are rendered by the employee.
2.9 Provision, Contingent Liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an outflow of resources embodying economic benefits is remote .Contingent liabilities are not recognized but are disclosed in notes.
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss (FVTPL) are recognised immediately in the statement of profit and loss.
Trade receivables not covering any material financing component or practical expedient as para 63 of Ind AS 115 is applied are recognised and measured at transaction price.
All recognised financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
Financial assets at amortized cost
Financial assets are subsequently measured at amortised cost using the effective interest method if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income (OCI) if these financial assets are held within a business whose objective is achieved by both selling financial assets and collecting contractual cash flows, the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition, the Company makes an irrevocable election on an instrument-byinstrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the âReserve for equity instruments through other comprehensive incomeâ. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments. So far, the Company has not elected to present subsequent changes in fair value of any investment in OCI.
Financial assets at fair value through profit or loss (âFVTPLâ)
Investment in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investment in equity instruments which are not held for trading. Other financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in profit or loss.
Impairment of financial assets (other than at fair value)
The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. However, for trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses. In cases where the amounts are expected to be realised up to one year from the date of the invoice, loss for the time value of money is not recognised, since the same is not considered to be material.
Derecognition of financial assets
On derecognition of a financial asset in its entirety, the difference between the assetâs carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in profit or loss if such gain or loss.
2.11 Financial liabilities and equity instruments Classification as debt or equity
Debt and equity instruments issued by a Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its liabilities. As per paragraph B5.2.3 of Ind AS 109, Financial Instruments, all investments in equity instruments must be measured at fair value. However, in limited circumstances, cost may be an approximate estimate of fair value. That may be the case if sufficient
more recent information is not available to measure the fair value. As in each of these investments, the Companyâs % voting power is less than 20% (in most of cases it is less than 2%) and as these are unlisted entities, recent detailed information is not available. Hence these are valued at cost which is considered to be approximate fair value. Investments in equity shares of subsidiary and associates are measured at costs as per Ind-As 28. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.
Compound financial instruments
The components of compound instruments are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. A conversion option that will be settled by issue of fixed number of the Companyâs own equity instruments in exchange of a fixed amount of cash or another financial asset is an equity instrument. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recognised as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or at the instrumentâs maturity date.
The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognised in equity will be transferred to other component of equity. When the conversion option remains unexercised at the maturity date of the convertible note, the balance recognised in equity will be transferred to retained earnings. No gain or loss is recognised in profit or loss upon conversion or expiration of the conversion option.
Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognised directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortised over the lives of the convertible notes using the effective interest method.
All financial liabilities are subsequently measured at amortized cost using the effective interest method.
Derecognition of financial liabilities
The Company derecognises financial liabilities when, and only when, the Companyâs obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.
These amounts represent liabilities for goods & services provided to the Company prior to the end of the financial year which are unpaid. These are recognised initially at fair value and subsequently measured at amortised cost using effective interest method.
The Company is mainly engaged in Media Business which is identified as the only reportable business segment of the Company in accordance with the requirements of Ind AS 108, âOperating Segment Reportingâ, notified under the Companies (Indian Accounting Standards) Rules, 2015. All the operating facilities are located in India. The Companyâs business activity primarily falls within a single geographical segment.
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
Basic earnings per share are computed by dividing the profit/loss for the year attributable to the shareholders of the parent Company by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/loss for the year attributable to the shareholders of the parent as adjusted for dividend, interest
and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.
2.16 Operating Cycle, Current Assets and Current Liabilities
Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
The Company presents assets and liabilities in the balance sheet based on current / non-current classification.
An asset is treated as current when it is:
⢠Expected to be realized or intended to be sold or consumed in normal operating cycle
⢠Held primarily for the purpose of trading
⢠Expected to be realized within twelve months after the reporting period, or
⢠Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
⢠It is expected to be settled in normal operating cycle
⢠It is held primarily for the purpose of trading
⢠It is due to be settled within twelve months after the reporting period, or
⢠There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
As a lessee, the Company determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any material leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Companyâs operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.
Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.
ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are re-measured with a corresponding adjustment to the related ROU asset if the Company changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
The Company as a lessor
eases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the ROU asset arising from the head lease.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
2.18 Critical accounting judgements and key sources of estimation uncertainty2.18.1 Critical accounting judgements in applying accounting policies
The following are the critical judgements, apart from those involving estimations that the Management have made in the process of applying the Companyâs accounting policies and that have most material effect on the amounts recognised in the consolidated financial statements.
Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
2.19 Key Source of estimation uncertainty
Key source of estimation uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment of investments, provisions and contingent liabilities.
The areas involving critical estimates are:
Useful lives and residual values of property, plant and equipment
Useful life and residual value of property, plant and equipment are based on managementâs estimate of the expected life and residual value of those assets. These estimates are reviewed at the end of each reporting period. Any reassessment of these may result in change in depreciation expense for future years (Refer note no 2.5).
Impairment of Property Plant and Equipment
The recoverable amount of the assets has been determined on the basis of their value in use. For estimating the value in use it is necessary to project the future cash flow of assets over its estimated useful life. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for in statement of profit or loss.
Valuation of Deferred tax assets
Deferred tax assets are recognised only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those deferred tax assets are likely to reverse and a judgment as to whether or not there will be sufficient taxable profits available to offset the tax assets when they do reverse. The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. Any change in the estimates of future taxable income may impact the recoverability of deferred tax assets.
There are no material material orders passed by the Regulators/Courts which would impact the going concern status of the Company and its future operations.
2.21 Foreign Currency Transaction Functional and presentation currency
Items included in the financial statements of entity are measured using currency of the primary economic environment in which the entity operates (âthe functional currencyâ). The financial statements are presented in Indian rupee (INR), which is entityâs functional and presentation currency.
Transactions in foreign currencies are initially recorded at their respective functional currency spot rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.
Differences arising on settlement or translation of monetary items are recognised in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item.
Dividends and interim dividends payable to the Companyâs shareholders are recognized as changes in equity in the period in which they are approved by the shareholdersâ meeting and the Board of Directors respectively.
2.23 Material Prior Period Error
Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior periods presented in which the error occurred. If the error occurred before the earliest period presented, the opening balances of assets, liabilities and equity for the earliest period presented, are restated.
There is no event occur after reporting period which needs to be disclosed.
Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
Mar 31, 2015
The significant accounting policies adopted by the Company in respect
of these financial statement, are set out below:
1.1 Basis of Preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as specified in the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956,
guidelines issued by the Securities and Exchange Board of India and
pronouncements of the Institute of Chartered Accountants of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
1.2 Revenue Recognition
Revenues of all material items and nature are recognized in accordance
with Accounting Standard - 9, i.e., at the time of rendering of
services or sales. If at the time of rendering of services or sales
there is significant uncertainty in ultimate collection of the revenue,
then the revenue recognition is postponed and in such cases revenue is
recognized only when it becomes reasonably certain that ultimate
collection will be made. When uncertainty of collection of revenue
arises subsequently after the revenue recognition, provision for the
uncertainty in collection is made rather than adjustment in revenue
already recognized. Turnover includes gross value of goods and services
and taxes. Dividend income is recognized when right to receive is
established. Interest income is recognized on time proportion basis
taking in to account the amount outstanding and rate applicable.
1.3 Fixed Assets, Intangible Assets and Capital Work-In -Progress
Fixed Assets are stated at cost less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready to use. Capital
work-in progress comprises outstanding advances paid to acquire fixed
assets, and the cost of fixed assets that are not ready for their
intended use at the balance sheet date. Intangible assets are recorded
at the consideration paid for acquisition.
1.4 Depreciation/ Amortization
Depreciation is provided on the straight-line method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act 1956 on
all the assets. Intangible Assets are amortized in accordance with
Accounting Standard 26 on "Intangible Assets". Purchased 'Intangible
Assets' is accordingly amortized on a straight line method over its
estimated useful lives of 10 years. Software licenses with a purchase
cost below Rs. 5000 are fully amortized in the year of acquisition
itself.
The cost of internally generated website is accordingly amortized on a
straight line method over its useful life of 10 years.
Depreciation for assets purchased / sold during a period is
proportionately charged. Individual low cost assets (acquired for less
than Rs. 5,000/-) are entirely depreciated in the year of acquisition
1.5 Investments
Trade Investments are the investments made to enhance the Company's
business interests. Investments are either classified as current and
long- term based on the management intention at the time of purchase.
Current investments are carried at the lower of cost and fair value.
Long-term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
1.6 Inventory
Inventory of Newsprint, goods in transit are stated at cost or net
realizable value, whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost formulae used
are 'First In First Out', 'Average cost', or 'Specific Identification',
as applicable. Due allowance is estimated and made for defective and
obsolete items, wherever necessary, based on the past experience of the
Company.
1.7 Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the exchange rate
prevailing at the date of transaction. Monetary items are restated at
year-end foreign exchange rates. Resultant exchange differences arising
on payment or conversion of liabilities are recognized as income or
expense in the year in which they arise.
1.8 Retirement Benefits
a) Company's contribution to the Employees' Provident Fund is charged
to the profit and loss account each year.
b) Short term employee benefits (Medical, Leave travel allowance, etc.)
expected to be paid in exchange for the services rendered are
recognised on undiscounted basis
c) Actuarial gains and losses arising from experience adjustments and
effects of changes in actuarial assumptions are immediately recognised
in the statement of profit and loss account as income or expense.
d) Gratuity and Leave encashment are provided for on the basis of an
actuarial valuation using projected unit credit method (PUCM).
1.9 Taxation
Income tax is computed using the tax effect accounting method; where
income tax is accrued in the same period in which the related revenue
and expenses arise. A provision is made for income tax annually based on
the tax liability computed, after considering tax allowances and
exemptions. Provision is also recorded when it is estimated that a
liability due to disallowances or other matters is probable.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount being considered. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on prevailing enacted or substantively enacted
regulations. Deferred tax assets are recognized only if there is
reasonable or virtual certainty that they will be realized and are
reviewed for the appropriateness of their respective carrying values at
each balance sheet date.
1.10 Borrowing Cost
Borrowing cost attributable to the acquisition or construction of a
qualifying asset is capitalized as a part of the cost of that asset. A
qualifying asset is one, which takes substantial period of time to get
ready for intended use. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
1.11 Impairment of Assets
Assets that are subject to amortization are reviewed for
impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is
recognized for the amount by which the assets' carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of the
assets' fair value less cost to sell and value in use. For the purpose
of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows (Cash generating
units).
1.12 Earnings Per Share
In determining earnings per share, the Company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional items. The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing Diluted EPS
comprises weighted average shares considered for deriving Basic EPS,
and also the weighted average number of equity shares which could have
been issued on the conversion of all dilutive potential equity shares.
The anti-dilutive effect, if any, of potential equity shares on diluted
EPS is ignored as per the requirement of accounting standard -20 on
"Earning per Share".
1.13 Provisions, Contingent Liabilities and contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statement.
1.14 Leases
Lease rentals in respect of assets taken on "Operating Lease" are
charged to the Profit & Loss Account.
Mar 31, 2014
The significant accounting policies adopted by the Company in respect
of these financial statement, are set out below:
1.1 Basis of Preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (ÂGAAP") under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as specified in the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956,
guidelines issued by the Securities and Exchange Board of India and
pronouncements of the Institute of Chartered Accountants of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
1.2 Revenue Recognition
Revenues of all material items and nature are recognized in accordance
with Accounting Standard  9, i.e., at the time of rendering of
services or sales. If at the time of rendering of services or sales
there is significant uncertainty in ultimate collection of the revenue,
then the revenue recognition is postponed and in such cases revenue is
recognized only when it becomes reasonably certain that ultimate
collection will be made. When uncertainty of collection of revenue
arises subsequently after the revenue recognition, provision for the
uncertainty in collection is made rather than adjustment in revenue
already recognized. Turnover includes gross value of goods and services
and taxes. Dividend income is recognized when right to receive is
established. Interest income is recognized on time proportion basis
taking in to account the amount outstanding and rate applicable.
1.3 Fixed Assets, Intangible Assets and Capital Work-In - Progress
Fixed Assets are stated at cost less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready to use. Capital
work-in progress comprises outstanding advances paid to acquire fixed
assets, and the cost of fixed assets that are not ready for their
intended use at the balance sheet date. Intangible assets are recorded
at the consideration paid for acquisition.
1.4 Depreciation/ Amortization
Depreciation is provided on the straight-line method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act 1956 on
all the assets. Intangible Assets are amortized in accordance with
Accounting Standard 26 on ÂIntangible Assets". Purchased ''Intangible
Assets'' is accordingly amortized on a straight line method over its
estimated useful lives of 10 years. Software licenses with a purchase
cost below Rs. 5000 are fully amortized in the year of acquisition
itself.
The cost of internally generated website is accordingly amortized on a
straight line method over its useful life of 10 years.
Depreciation for assets purchased / sold during a period is
proportionately charged. Individual low cost assets (acquired for less
than Rs. 5,000/-) are entirely depreciated in the year of acquisition
1.5 Investments
Trade Investments are the investments made to enhance the Company''s
business interests. Investments are either classified as current and
long- term based on the management intention at the time of purchase.
Current investments are carried at the lower of cost and fair value.
Long-term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
1.6 Inventory
Inventory of Newsprint, goods in transit are stated at cost or net
realizable value, whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost formulae used
are ''First In First Out'', ''Average cost'', or ''Specific Identification'',
as applicable. Due allowance is estimated and made for defective and
obsolete items, wherever necessary, based on the past experience of the
Company.
1.7 Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the exchange rate
prevailing at the date of transaction. Monetary items are restated at
year-end foreign exchange rates. Resultant exchange differences arising
on payment or conversion of liabilities are recognized as income or
expense in the year in which they arise.
1.8 Retirement Benefits
a) Company''s contribution to the Employees'' Provident Fund is charged
to the profit and loss account each year.
b) Short term employee benefits (Medical, Leave travel allowance, etc.)
expected to be paid in exchange for the services rendered are
recognised on undiscounted basis
c) Actuarial gains and losses arising from experience adjustments and
effects of changes in actuarial assumptions are immediately recognised
in the statement of profit and loss account as income or expense.
d) Gratuity and Leave encashment are provided for on the basis of an
actuarial valuation using projected unit credit method (PUCM).
1.9 Taxation
Income tax is computed using the tax effect accounting method; where
income tax is accrued in the same period in which the related revenue
and expenses arise. A provision is made for income tax annually based
on the tax liability computed, after considering tax allowances and
exemptions. Provision is also recorded when it is estimated that a
liability due to disallowances or other matters is probable.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount being considered. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on prevailing enacted or substantively enacted
regulations. Deferred tax assets are recognized only if there is
reasonable or virtual certainty that they will be realized and are
reviewed for the appropriateness of their respective carrying values at
each balance sheet date.
1.10 Borrowing Cost
Borrowing cost attributable to the acquisition or construction of a
qualifying asset is capitalized as a part of the cost of that asset. A
qualifying asset is one, which takes substantial period of time to get
ready for intended use. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
1.11 Impairment of Assets
Assets that are subject to amortization are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for the
amount by which the assets'' carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of the assets'' fair value
less cost to sell and value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (Cash generating units).
1.12 Earnings Per Share
In determining earnings per share, the Company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional items. The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing Diluted EPS
comprises weighted average shares considered for deriving Basic EPS,
and also the weighted average number of equity shares which could have
been issued on the conversion of all dilutive potential equity shares.
The anti-dilutive effect, if any, of potential equity shares on diluted
EPS is ignored as per the requirement of accounting standard -20 on
"Earning per Share".
1.13 Provisions, Contingent Liabilities and contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statement.
1.14 Leases
Lease rentals in respect of assets taken on ÂOperating Lease" are
charged to the Profit & Loss Account.
Mar 31, 2013
1.1 Basis of Preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as specified in the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956,
guidelines issued by the Securities and Exchange Board of India and
pronouncements of the Institute of Chartered Accountants of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
1.2 Revenue Recognition
Revenues of all material items and nature are recognized in accordance
with Accounting Standard - 9, i.e., at the time of rendering of
services or sales. If at the time of rendering of services or sales
there is significant uncertainty in ultimate collection of the revenue,
then the revenue recognition is postponed and in such cases revenue is
recognized only when it becomes reasonably certain that ultimate
collection will be made. When uncertainty of collection of revenue
arises subsequently after the revenue recognition, provision for the
uncertainty in collection is made rather than adjustment in revenue
already recognized. Turnover includes gross value of goods and services
and taxes. Dividend income is recognized when right to receive is
established. Interest income is recognized on time proportion basis
taking in to account the amount outstanding and rate applicable.
1.3 Fixed Assets, Intangible Assets and Capital Work-in - Progress
Fixed Assets are stated at cost less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready to use. Capital
work-in progress comprises outstanding advances paid to acquire fixed
assets, and the cost of fixed assets that are not ready for their
intended use at the balance sheet aate. Intangible assets are recorded
at the consideration paid for acquisition.
1.4 Depreciation/ Amortization
Depreciation is provided on the straight-line method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act 1956 on
all the assets. Intangible Assets are amortized in accordance with
Accounting Standard 26 on "Intangible Assets". Purchased ''Intangible
Assets'' is accordingly amortized on a straight line method over its
estimated useful lives of 10 years. Software licenses with a purchase
cost below Rs. 5000 are fully amortized in the year of acquisition
itself.
The cost of internally generated website is accordingly amortized on a
straight line method over its useful life of 10 years.
Depreciation for assets purchased / sold during a period is
proportionately charged. Individual low cost assets (acquired for less
than Rs. 5,000/-) are entirely depreciated in the year of acquisition.
1.5 Investments
Trade Investments are the investments made to enhance the Company''s
business interests. Investments are either classified as current and
long- term based on the management intention at the time of purchase.
Current investments are carried at the lower of cost and fair value.
Long-term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
1.6 Inventory
Inventory of Newsprint, goods in transit are stated at cost or net
realizable value, whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost formulae
used are ''First In First Out'', ''Average cost'', or ''Specific
Identification'', as applicable. Due allowance is estimated and made for
defective and obsolete items, wherever necessary, based on the past
experience of the Company.
1.7 Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the exchange rate
prevailing at the date of transaction. Monetary items are restated at
year-end foreign exchange rates. Resultant exchange differences arising
on payment or conversion of liabilities are recognized as income or
expense in the year in which they arise.
1.8 Retirement Benefits
a) Company''s contribution to the Employees'' Provident Fund is charged
to the profit and loss account each year.
b) Short term employee benefits (Medical, Leave travel allowance, etc.)
expected to be paid in exchange for the services rendered are
recognised on undiscounted basis
c) Actuarial gains and losses arising from experience adjustments and
effects of changes in actuarial assumptions are immediately recognised
in the statement of profit and loss account as income or expense.
d) Gratuity and Leave encashment are provided for on the basis of an
actuarial valuation using projected unit credit method (PUCM).
1.9 Taxation
Income tax is computed using the tax effect accounting method; where
income tax is accrued in the same period in which the related revenue
and expenses arise. A provision is made for income tax annually based
on the tax liability computed, after considering tax allowances and
exemptions. Provision is also recorded when it is estimated that a
liability due to disallowances or other matters is probable.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount being considered. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on prevailing enacted or substantively enacted
regulations. Deferred tax assets are recognized only if there is
reasonable or virtual certainty that they will be realized and are
reviewed for the appropriateness of their respective carrying values at
each balance sheet date.
1.10 Borrowing Cost
Borrowing cost attributable to the acquisition or construction of a
qualifying asset is capitalized as a part of the cost of that asset. A
qualifying asset is one, which takes substantial period of time to get
ready for intended use. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
1.11 Impairment of Assets
Assets that are subject to amortization are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for the
amount by which the assets'' carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of the assets'' fair value
less cost to sell and value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (Cash generating units).
1.12 Earnings Per Share
In determining earnings per share, the Company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional items. The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing Diluted EPS
comprises weighted average shares considered for deriving Basic EPS,
and also the weighted average number of equity shares which could have
been issued on the conversion of all dilutive potential equity shares.
The anti-dilutive effect, if any, of potential equity shares on diluted
EPS is ignored as per the requirement of accounting standard -20 on
"Earning per Share".
1.13 Provisions, Contingent Liabilities and contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statement.
1.14 Leases
Lease rentals in respect of assets taken on "Operating Lease" are
charged to the Profit & Loss Account.
Mar 31, 2010
1) Basis of Preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as specified in the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956,
guidelines issued by the Securities and Exchange Board of India and
pronouncements of the Institute of Chartered Accountants of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
2) Revenue Recognition
Revenues of all material items and nature are recognized in accordance
with Accounting Standard à 9, i.e., at the time of rendering of
services or sales. If at the time of rendering of services or sales
there is significant uncertainty in ultimate collection of the revenue,
then the revenue recognition is postponed and in such cases revenue is
recognized only when it becomes reasonably certain that ultimate
collection will be made. When uncertainty of collection of revenue
arises subsequently after the revenue recognition, provision for the
uncertainty in collection is made rather than adjustment in revenue
already recognized. Turnover includes gross value of goods and services
and service tax. Dividend income is recognized when right to receive is
established. Interest income is recognized on time proportion basis
taking in to account the amount outstanding and rate applicable.
3) Fixed Assets, Intangible Assets and Capital Work-In - Progress
Fixed Assets are stated at cost less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready to use. Capital
work-in progress comprises outstanding advances paid to acquire fixed
assets, and the cost of fixed assets that are not ready for their
intended use at the balance sheet date. Intangible assets are recorded
at the consideration paid for acquisition.
4) Depreciation/ Amortization
Depreciation is provided on the straight-line method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act 1956 on
all the assets. Intangible Assets are amortized in accordance with
Accounting Standard 26 on ÃIntangible AssetsÃ. Purchased ÃIntangible
Assets is accordingly amortized on a straight line method over its
estimated useful lives of 10 years. Software licenses with a purchase
cost below Rs.5000 are fully amortized in the year of acquisition
itself.
The cost of internally generated Intangible assets is accordingly
amortized on a straight line method over its useful life of 10 years.
Depreciation for assets purchased / sold during a period is
proportionately charged. Individual low cost assets (acquired for less
than Rs. 5,000/-) are entirely depreciated in the year of acquisition
5) Investments
Trade Investments are the investments made to enhance the Companys
business interests. Investments are either classified as current and
long- term based on the management intention at the time of purchase.
Current investments are carried at the lower of cost and fair value.
Long-term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
6) Inventory
Inventory of Newsprint, goods in transit are stated at cost or net
realizable value, whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost formulae used
are ÃFirst In First Out, ÃAverage cost, or ÃSpecific Identification,
as applicable. Due allowance is estimated and made for defective and
obsolete items, wherever necessary, based on the past experience of the
Company.
7) Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the exchange rate
prevailing at the date of transaction. Monetary items are restated at
year-end foreign exchange rates. Resultant exchange differences arising
on payment or conversion of liabilities are recognized as income or
expense in the year in which they arise.
8) Retirement Benefits
a) Companys contribution to the Employees Provident Fund is charged
to the profit and loss account each year.
b) Short term employee benefits (Medical, Leave travel allowance, etc.)
expected to be paid in exchange for the services rendered are
recognised on undiscounted basis
c) Actuarial gains and losses arising from experience adjustments and
effects of changes in actuarial assumptions are immediately recognised
in the statement of profit and loss account as income or expense.
d) Gratuity and Leave encashment are provided for on the basis of an
actuarial valuation using projected unit credit method (PUCM).
9) Taxation
Income tax is computed using the tax effect accounting method; where
income tax is accrued in the same period in which the related revenue
and expenses arise. A provision is made for income tax annually based
on the tax liability computed, after considering tax allowances and
exemptions. Provision is also recorded when it is estimated that a
liability due to disallowances or other matters is probable.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax
asset or deferred tax liability is recorded for timing differences,
namely the differences that originate in one accounting period and
reverse in another, based on the tax effect of the aggregate amount
being considered. The tax effect is calculated on the accumulated
timing differences at the end of an accounting period based on
prevailing enacted or substantively enacted regulations. Deferred tax
assets are recognized only if there is reasonable or virtual certainty
that they will be realized and are reviewed for the appropriateness of
their respective carrying values at each balance sheet date.
10) Borrowing Cost
Borrowing cost attributable to the acquisition or construction of a
qualifying asset is capitalized as a part of the cost of that asset. A
qualifying asset is one, which takes substantial period of time to get
ready for intended use. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
11) Impairment of Assets
Assets that are subject to amortization are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for
the amount by which the assets carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of the assets fair value
less cost to sell and value in use.For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (Cash generating units).
12) Earnings Per Share
In determining earnings per share, the Company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional items. The number of
shares used in computing basic earnings per share is the weighted
average number of shares outstanding during the period. The number of
shares used in computing Diluted EPS comprises weighted average shares
considered for deriving Basic EPS, and also the weighted average number
of equity shares which could have been issued on the conversion of all
dilutive potential equity shares. The anti- dilutive effect,if any, of
potential equity shares on diluted EPS is ignored as per the
requirement of accounting standard -20 on ÃEarning Per ShareÃ.
13) Provisions ,Contingent Liabilities and contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources
.Contingent liabilities
are not recognized but disclosed in the notes. Contingent assets are
neither recognized nor disclosed in the financial statement.
14) Deferred Revenue Expenditure
Deferred Revenue Expenditure represents new projects implementation
cost to be amortized over a period of 60 months or earlier equally,
commencing from the month of commencement of commercial activities of
the project.
15) Initial Public Offering (IPO) Expenses
Public Issue Expenses are written off from share premium account as per
section 78(2) (c) of the Companies Act, 1956 in five equal accounting
year commencing with the year of listing of equity share on the
designated stock exchange.
16. Leases
Lease rentals in respect of assets taken on "Operating Lease" are
charged to the Profit & Loss Account.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Cyber Media (India) Ltd.
-
Cyber Media (India) Ltd. Tools
- Bulk Deals
-
Cyber Media (India) Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Rights
- BSE Price History
- NSE Price History
-
Cyber Media (India) Ltd. Key Financial Ratios
- Ratios
-
Cyber Media (India) Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Cyber Media (India) Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Cyber Media (India) Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Cyber Media (India) Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
-
Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
-
Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+