HINANCIAL STATEMENTS OF ‘OUT OF HOME DIGITAL (PVT) LIMITED FOR THE YEAR ENDED 31ST MARCH 2019f f f No, 516, Police Park Terrace, Off Police Park Avenuc D.H.P, MUNAWEERA & CO. Colombo 05, Chartered Accountants. Sri Lanka, errr Telephone : +94 11 2553006 496 11 2555313, Fax REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS ‘TO THE SHAREHOLDERS OF OUT OF HOME DIGITAL (PVT) LIMITED We have audited the Financial Statements of Out of Home Digital (Pvt) Limited, which comprise the Statement of Einancial Position as at 31 March 2019 and the Statement of Profit or Loss and other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended and Notes to he Financial Statements, including a Summary of Significant Accounting Policios, Basis for Opinion We conducted our audit in accordance with Sri Lanka Auditing Slandard (SLAuS) fr the Audis of Non ~ Specified Business Enterprises (NonSBEs), which require that we plan and perform the audit to obtain reasonable araeree shost whether the said Financial Statements are free of material misstatements. An Audit includes examining, on a {pat bas evidence supporting the aniounis and disclosure in the said Financial Statements, assessing the Accounting patelples used and significant estimates made by the management, evaluating, the overall presentation of the Financial Statements, and determining whether the said Financial Statements are prepared. and. presented. in accordance with the Sri Lanka Accounting Standard for Small and Medium-sized Entities (SLFRS for SMEs), We have obtained all the information and explanations which tothe best of our knowledge and belief were nevessary for the Purposes of our audit, We therefore believe that our audit provides a reasonable bass for our opinion. Qualified Opinion ‘The Financial Statements ofthe prior period were audited by another Auditor. Aecounting Policies applied by the Company had not been disclesed in the Financial Statements forthe prior periods Consequently we were unable to ascertain whether the accounting policies disclosed during the year have been consistently applied from the previous years, Note No. 12 shows sum of Rs. 8,881,706/= which was misappropriated by the Accountant during the year ended 31/08/2019. The Company has filed a legal action against him, We were unable to verify this amoust due tothe lane of Audit Evidence, Boue opinion excep for the effect on the Financial Statements of the matters referred to inthe preceding paragraphs, Hi, Sccompany ng Financial Statements give a true and far view of, or present fairy, in all material respects, the Financial Position of the Company as at 31* March 2019 and of its financial performance and its Cash Flowe for the Year then ended in accordance with Sri Lanka Accounting Standard for Small and Medium-sized Entities (SLERS for SMEs) Respective Responsibilities of Management and Auditors he Management is responsible for maintaining proper accounting records, preparing and presenting these Financial Statements in accordance with the Sri Lanka Accounting Standard for Small and Medium-sized Entities (SLERS for SMEs). Out responsibility isto express an opinion on these Financial Statements, based on our Audit, Report on Other Legal and Regulatory Requirements As required by Section 163 @) of the Companies Act No, 07 of 2007, and as far as appears from our examination, proper accounting records have been kept by the Company, DP IMPVENR Blo D.H.P. MUNAWEERA & COMPANY (CHARTERED ACCOUNTANTS Colombo 06% August 2020 MW/er 1 ere K.LJ.N. PERERA FCA, FMAAT, B.8. MGT,ACC) SP, R.D.M. WIJETHUNGA ACA Bsc (MGT)FOR THE YEAR ENDED 31ST MARCH Revenue (Other Operating Income Selling & Distribution Expenses ‘Administration & Establishment Expenses Result from Operating Activities Fi Finance Income Net Finance Income nce Costs Profil (Loss) before Taxation Income Tax Expenses Net Profit /(Loss) for the year ‘Other Comprehensive Income ‘Total Comprehensive Income/ (Loss) for the year Earning per Share Figures in brackets indicate deductions. our IGITAL (PVT) LIMITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Notes 2019 Rs. 17,495,106.59 2,723,631.43 20,218,738.02 (1,084,228.55) (4,985,268.66) 14,149,24081 (41,955.74) (41,955.74) 14,107,285.07 (214,598.00) 13,892,687.07 138,926.87 ee | (21,198) (3386,688) 549,071 (1550) (1550) 547,521 (40,057) 507,464 5,075 ‘The Accounting Policies and Notes on Pages 6 through 21 form an integral part of these Financial Statements.OUT OF HOME DIGITAL (PVT) LIMITED. STATEMENT OF FINANCIAL POSITION. AS AT 31ST MARCH 2019 2018 Notes Rs. Rs. ASSETS NON-CURRENT ASSETS. Property, Plant & Equipment 0 ‘Total Non-Current Assets 154,806.25 (CURRENT ASSETS ‘Trade & Other Receivables n 15,215,587.08 1,160,248 Cash Embezzlement By Accountant R 8,881,705.94 - Other Current Assets 1B = 814,383 Cash & Cash Equivalents u 2,095 960.19 2,924,643 ‘Total Current Assets 25,193,253.17 4,899,278 ‘TOTAL ASSETS 26,388,059.42 5,043,374 EQUITY & LIABILITIES EQUITY Stated Capital 8 1,090.00 14,000 Retained Earnings 9,538,500.01 (4,354,157) ‘Total Equity 9,539,530.01 (6353157) NON - CURRENT LIABILITIES Deferred Tax Liability 16 10,142.00 : ‘Total Non-Current Liabilities 106200), ; LE CURRENT LIABILITIES ‘Trade & Other Payables wv 771934582 286,888, Income Tax Payable 8 204,455.59 40,057 Amounts due to Related Parties » 8,874,586.00 9,069,586 ‘Total Current Liabi 16,798,387.41 9,396,531 ‘TOTAL EQUITY & LIABILITIES 26/348,059.42 5,038,374 ‘These Financial Statements are prepared in compliance with the requirements of the Companit Act No. 7 of 2007. Approved and signed for and on behalf of the Board by, 06th August: Figures in brackets indicate deductions. ‘The Accounting Policies and Notes on Pages 6 through 21 form an 3QUT OF HOME DIGITAL (PVT) LIMITED ‘STATEMENT OF CHANGES IN EQUITY Balance as at Olst April 2017 Issue of Shares ‘Total Comprehensive Income for the year Balance as at 31st March 2018 Total Comprehensive Income for the year Balance as at 31st March 2019 Figures in brackets indicate deductions. 1,000.00 1,000.00 000.00 Retained Earnings Rs. (4361,621.47) 507,464.41 (4,354,157.06) 13,892,687.07 9,538,530.01 Rs. (4,861,621.47) 1,000.00 507,468.41 (4,353,157.06) 13,892,687.07 ‘The Accounting Policies and Notes on Pages 6 through 21 form an integral part of these Financial Statements,OUT OF HOME DIGITAL (PVT) LIMITED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 318T MARCH CASH FLOWS FROM OPERATING ACTIVITIES ‘Net Operating Profit/ (Loss) before Taxation ADJUSTEMENTS FOR Finance Cost Depreciation Operating Profit/ (Loss) before Working Capital Changes Adjustment for Movement in Working Capital (Increase)/ Decrease in Trade & Other Receivables (Increase)/ Decrease in Other Current Assets Increase/ (Decrease) in Trade & Other Payables Increase/ (Decrease) in Amount Due to Related Parties Net Cash Generated from Operations Finance Expenses Paid ‘Taxes Paid ‘Net Cash flow/ (Outflow) from Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of Property, Plant & Equipment Net Cash Flow from (used in) Investing Activities (CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Issue of Shares Net Cash used in Financing Activities Net Increase / (Decrease) in Cash & Cash Equivalents, Cash & Cash Equivalents at the beginning of the year Cash & Cash Equivalents at the end of the year - Note 1 NOTE1 Cash in hand & At Bank (Note 14) Figures in brackets indicate deductions. 2019 Rs. 14,107,285 41,956 44,594 14,193,835 (22,937,085) 814,383 7,432,458 (195,000) (691,370) (41,956) (40,057) (73,383) 2018 Rs. 547,521 1,550 549,071 (990,044) 3,331,820 2,890,847 (1550) 2,889,297 (55,300) i (65,300) (628,683) 2,924,643 2,095,960 2,095,960 2,095,960 ‘The Accounting Policies and Notes on Pages 6 through 21 form an integral part of these Financial 5 5 eR 2,884,297 40,346 _ 2,924, 64: i 2,924,613 2,924,633Uh 12 13 2a 22 23 23 OUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS CORPORATE INFORMATION Reporting Entity Out of Home Digital (Pvt) Limited is a Limited Liability Company incorporated and domiciled in Sri Lanka, ‘The Registered Office and Principal Place of Business is located at 25 Floor, East Tower, World Trade Center, Colombo 01, Principal Activities & Nature of Operations During the Period, the principal activities of the Company were handling Payroll assignments ancl providing Advertising Services. Approval of Financial Statements ‘ ‘The Financial Statements for the year ended 31% March 2019, were authorized for issue by the Board of Directors on 06! August 2020. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation i ‘The Financial Statements have been prepared on an accrual basis and under the historical cost convention except for derivative financial instruments, fair value through profit or loss financial assets, financial assets at amortized cost and fair value through other comprehensive income financial assets that have beet measured at fair value, i Statement of Compliance ‘The Financial Statements of the Company have been prepared in accordance with Sti Lanka Accounting, Standards for Small and Medium-sized Entities (’SLERS" for SMEs) as issued by the Institute of Chartered Accountants of Sri Lanka. ‘The preparation and presentation of these Financial Statements are in compliance with the requirements of the Companies Act No.07 of 2007. Significant Accounting Judgements, Estimates and Assumptions In the process of applying the Company's accounting policies, management has exercised judgement ancl estimates in determining the amounts recognized in the Financial Statements. Use of available information, estimates and assumptions and application of judgement is inherent in the preparation of the Financial Statements as they affect the application of accounting, policies and the recorded amounts in the Financial Statements, ‘The Company believes its estimates including the valuation of assets and liabilities are appropriate: Estimates and underlying assumptions are reviewed on a continuous basis, However the actual results may differ from those estimates. The most significant uses of judgements and estimates are as follows: Judgements “Taxation ‘The Company is subject to income tax and other taxes. The liability to Taxation has been computed int accordance with the provisions of the Inland Revenue Act No.24 of 2017 and the amendments thereto: Income Tax expense comprises current and deferred tax, Income tax expense is recognizes except to the extent that it relates to items recognized directly in equity or other comprehensive income, int which case itis recognized either in equity or other comprehensive income respectively.23.2 24 25 25.1 2514 QUT OF HOME DIGITAL (PV1) LIMITED i NOTES TO THE FINANCIAL STATEMENTS. ‘The Company recognized assets and Liabilities for Current, deferted and other Taxes based on estimates of whether additional taxes will be due. Where the final Tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the Income and Deferred Tax amounts in the period in which the determination is made, Estimates & Assumptions Going Concern ‘The Board of Directors has made an assessment on the Company's ability to continue as @ going concern, and is satisfied that it has the resources to continue in operation for the foreseeable future. Further more, management is not aware of any material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern. Therefore, the Financial Statements continue to be prepared on the going concern basis, Fair Value of Financial Instruments Where the fair values of financial assets and financial liabilities recorded in the Statement of Financial Position cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of mathematical models. The inputs to these models are derived from observable market data where possible, but if this is not available, judgement is required establishing fair values. Foreign Currency Translation ‘The Financial Statements are presented in Sti Lankan Rupees (Rs.) which is the Company's functional ancl presentation currency, ‘Transactions in foreign currencies are initially recorded at the spot middle rate of exchange ruling at the date of the transaction monetary assets and liabilities denominated in foreign currencies are retranslated at the spot middle rate of exchange at the reporting date. All differences arising on non-tracting activities are taken fo ‘Other Operating Income’ in the Income Statement, Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the spot exchange rates as at the date of recognition. i Financial Instruments Financial Assets Initial Recognition and Measurement Financial assets are classified, at intial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income and fair value through Profit or Loss. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVPL, transaction costs that are directly attributable to ite acquisition or issue, A trade Receivable without a significant financing component is initially measured at the transaction price.QUT OF HOME DIGITAL (PVT) LIMITED 2.84.2 Subsequent Measurement (a) (b) © For purposes of subsequent measurement, financial assets are classified in four categories 4 + Financial assets at amortized cost (debt instruments) * Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments) + Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon de-recognition (equity instruments) + Financial assets at fair value through profit or Loss. Financial Assets at Amortized cost (Debt Instruments) ‘The Company measures financial assets at amortized cost if both of the following conditions are met: © The financial asset is held within a business model with the objective to hold financial assets in order to collect Contractual Cash Flows and 1 + ‘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, H Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method anel are subject to Impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, Modified or impaired. Financial Assets at Fair Value through OCI (Debt Instruments) ‘The Company measures debt instruments at fair value through OCI if both of the following conditions are met ° The financial asset is held within a business model with the objective of both holding to collect contractual cash lows and selling. * 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. For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or Reversals are recognized in the Statement of Profit or Loss and computed in the same ‘manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon de-recognition, the cumulative fair value change recognized in OCI is recycled to Profit or Loss. Financial Assets Designated at Fair Value through OCI (Equity Instruments) Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity Instruments designated at fair value through OCI when they meet the definition of equity under LKAS 32 Financial Instruments: Presentation and are not held for trading, The classification is determined on an Instrument-by instrument basis(a) 251.3 (a) (b) 2514 QUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS. Gains and losses on these financial assets are never recycled to Statement of Profit or Loss, Dividends are recognized as other income in the Statement of Profit or Loss when the right of payment has been, established, from such proceeds as a recovery of part of the cost of the financial asset, in which case, such, gains are recorded in OCI. Equity Instruments designated at fair value through OCT are not subject to impairment assessment, Financial Assets at Fair Value through Profit or Loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon Initial recognition at fair value through profit or loss, or financial assets mandatorily requited to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedde derivatives, are also classified as held for trading unless they are designated as effective hedging instruments, Financial assets with Cash Flows that are not solely payments of, principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model, Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at fair value through Profit or Loss are carried in the Statement of Financial Position at fair value with net changes in fair value recognized in the Statement of Profit or Less. De-recognition A financial asset is derecognized when: © The rights to receive Cash Flows from the asset have expired, } © ‘The Company has transferred its rights to receive Cash Flows from the asset or has assumed an obligation to pay the received Cash Flows in full without material delay to a third party under & pass-through’ arrangement; and either ‘The Company has transferred substantially all the risks and rewards of the asset, 1 ‘The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive Cash Flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all of the risks ancl rewards of the asset nor transferred control of it, the asset is recognized to the extent of the Company's continuing involvement in it. Impairment of Financial Assets i The Company recognizes an allowance for Expected Credit Losses (ECLs) for all debt instruments not held at fair value through Profit or loss, ECLs are based on the difference between the contractual Cash Flows: due in accordance with the contract and all the Cash Flows that the Group expects to receive, discountect at an approximation of the original effective interest rate. The expected Cash Flows will include Cash Flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.25.2 25.21 25.2.2 (a) 253 OUT OF HOME DIGITAL (PVT) LIMITED BCLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, BCLs are provided for credit losses that result from default events that are possible within the next 12 months (a 12 month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs, Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that ig based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors, and the economic environment. Initial Recognition & Measurement Financial liabilities are classified, a initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, carried at amortized cost. ‘This includes directly attributable transaction costs. Subsequent Measurement ‘The measurement of financial liabilities depends on their clas jon as follows: Loans & Borrowings ‘After initial recognition, interest beating loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in the income statement when the liabilities are derecognized as well as through the effective interest rate method (EIR) amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The FIR amortization is included in finance costs in the Income Statement. ‘ Fair value of Financial Instruments The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices, without any deduction for transaction casts. For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include using recent arm's length market transactions; reference to the current fair value of another instrument that is substantially the same; a discounted Cash Flow analysis or other valuation models. i 10254 26 27 OUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS, Impairment of Non-Financial Assets ‘The carrying amounts of the Company's non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. For intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated each year at the same time. ‘The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future Cash Flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates Cash Inflows from continuing use that are largely independent of the Cash Inflows of other assets or groups of assets (the ‘cash generating unit’ or ‘CGU’). An impairment loss is recognized if the carrying amount of an asset ‘or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed, if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Property, Plant & Equipment Property, Plant & Equipment are stated at cost excluding the costs of day-to-day servicing, less accumulated depreciation and accumulated impairment in value. Changes in the expected useful life are accounted for by changing the amortization period or method, as appropriate, and treated a5 changes in accounting estimates. ‘The Company reviews its assets’ residual values, useful lives and method of depreciation at each reporting date, Judgement by the management is exercisedi in the estimation of these values, rates, methods ancl hence they are subject to uncertainty. ‘ Depreciation on other Property, Plant & Equipment has been provided on the straight line basis as follows: Assets Rate Furniture & Fittings 25% i Office Equipment 23% ‘Computers 25% Property, Plant & Equipment are derecognized on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in ‘Other Operating, Income’ or ‘Other Operating Expenses’ as appropriate in the Income Statement in the year the asset is de- recognized. Leases The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date, whether fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. u28.1 28.2 29 210 2a 2a OUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS Finance leases that transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the leased property or ,if lower, at the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Lease payments are apportioned between finance charges and reduction of the lease liability 50 as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized. in finance costs in profit or loss, A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term, Operating lease payments are not recognized in the Company's statement of financial position and recognized as an operating expense in the income statement on a straight-line basis over the lease term. Employee Benefit Liabilities Defined Benefit Plan ~ Gratuity The Company pays gratuity according to the payment of gratuity Act No. 12 of 1983, the liability for gratuity to an employee arises only on completion of 5 years of continued service with the Company. The lity is not externally funded or itis actually valued. Defined Contribution Plans - Employees’ Provident Fund and Employees’ Trust Fund Employees are eligible for Employees’ Provident Fund and Employees’ Trust Fund contributions in line with respective statutes and regulations. Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, and it is probable that an autflow of resources embodying economic benefits will be requirecl to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating, to any provision is presented in the Income Statement net of any reimbursement. : ‘Trade & Other Payables Trade Payables are recognized initially at the transaction price and subsequently measured at amortized! cost using the effective interest method. Taxes Current Tax Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. 12242 243 aaa QUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS 21.2 Deferred Tax Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences, except where deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither the accounting profit nor taxable profit or loss In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future, Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused ta: credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tay: Iosses can be utilized except where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or in respect of deductible temporary differences associated with investments in subsidiaries, deferred tart assets are recognized only to the extent that itis probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized, : ‘The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it i8 no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profit will allow thé deferred tax asset to be recovered. ‘ Deferred Tax Assets and Liabilities are measured at the Tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and Tax Laws) that have been enacted or substantively enacted at the reporting date. ! Deferred Tax assets and deferred Tax Liabilities are offset if a legally enforceable right exists to set-off Current Tax Assets against Current Tax Liabilities and the Deferred Taxes relate to the same Taxable Company and the same Taxation authority. Borrowing Costs All borrowing costs are expensed! in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Capital Commitments & Contingent Liabilities, Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events or present obligations where the transfer of economic benefits is not probable or cannot be reliably ‘measured. Capital commitments and contingent liabilities of the Company are disclosed in the respective notes to the Financial Statements. Cash & Cash Equivalents Cash and Cash equivalents include cash on hand, demand deposits and other short-term highly liquicl investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the statement of Financial Position, 13OUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS, Statement of Comprehensive Income i Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to Company and the revenue and associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable net of trade discounts and Value ‘Added Taxes, The following specific criteria are used for recognition of revenue, (a) Rendering of Services Revenue from the rendering of services is recognized in the accounting period in which the services are rendered or performed. (b) Interest Income Interest income is recognized on accrual basis using effective interest rate method (FIR). (Others Gains and losses of a revenue nature on the disposal of Property, Plant & Equipment and other non-current assels including investments are recognized by comparing the net sales proceeds with the carrying amount of the corresponding asset and are recognized net within 'other income’ in Profit and Loss. Expenditure Recognition Expenses are recognized in profit or loss on the basis of a direct association between the costs incurred and the earning of specific items of income. All expenditure incurred in the running of the business and irt maintaining the Property, Plant & Equipment in a state of efficiency has been charged to income in arriving at the profit for the year. For the purpose of presentation of Statement of Comprehensive Income the Directors are of the opinion that ‘function of expenses method’ presents fairly the elements of the Company's performance, and hence such presentation method is adopted. Related Party Transactions ' Disclosure is made in respect of transactions is which one party has the ability to control or exercise significant influence over the financial and operating policies, decision of the other irrespective of whether 4 price is being charged. Events after the Reporting Date All material events occurring after the reporting date have been considered and where necessary adjustments have been made to the Financial Statements Segmental Reporting ‘The Company does not distinguish its products into significant components for identifying segments. Earnings per Share ‘The Company presents basic Earnings per Share (EPS) for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted number of ordinary shares outstanding during the period. \ Cash Flow Statement ‘The Cash Flow Statement has been prepared using the inditect method. 432 OUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS: FOR THE YEAR ENDED 31ST MARCI REVENUE. Service Income Nokia Project Income aa Other Project Income 32 NOKIA PROJECT INCOME Reimbursement of Expenses Managers Salaries Promoters Salaries Incentives & Bonus EPF ETF Reimbursement of Expenses ‘Admin Charges Food & Loading Expenses ‘Aciministrative Salaries Exclusive Office Space for TNS Staff Insurance Less; Expenses Managers Salary Promoters Salary Incentives IPF TTF Net Income Other Project Income Other Project Income ‘Advertising Income Vivid Motion Project Shaw Wallace Project Noorani Bstates Project Kalbe Shoot Project ‘Arogaya Farm Project Less: Expenses Project Related Expenses FB Advertising Charges - Cooking TV Hosting Charges - Cooking TV 1k Net Income 18 2019) Rs, 10,167,783.67 415,857.11 3.211,465.81 17495 106.59 1410227623 28,392,699.90 15,911,405.40 4,287,226.33 129,745.81 49:290.00 681,682.28, 1,606,327.57 11078,561.67 471,450.00, 119494.00 67,690 159.19 15,248 525.90 26,269 941.29 16348,020.42 4,685,279.38 1,062,535.09 3,574 302.08 4.115,857.11 93,592,926.77 371,657.06 50,000.00 $945,000.00 300,000.00 4,818.20 80,000.00 5,344.432.08 2,132,966.22 2,132,966.28 321,465.81 2018 Bs. 34702 3,955,954 3,384,792 waat7 48,105 58,500 12162 12,162 336,792 281,005,QUT OF HOME DIGITAL (PVT) LIMITED. NOTES TO THE FINANCIAL STATEMENTS YOR THE YEAR ENDED sist MARCH an a OTHER OPERATING INCOME a ie thangs Gan amaeasn : 2,723,631.43_ SELLING & DISTRIBUTION EXPENSES Advertising Expenses 12,819.06 7,000 Discount Given 393,251.30 - Sales Commission - Staff 678,158.10 14,95 1,084,228.55 21,195 ADMINISTRATION & ESTABLISHMENT EXPENSES Staff Salary 3,459,973.88 1,721,600 Accountancy Fees 375,000.00 : EPF-12% : 206,594 ETF -3% - 51,648 Casual Wages - 704,479 Office Rent - 644,280 Audit Fees 75,000.00 47,500 Other Expenses : 6.087 IT Related Expenses 25,542.50 4500 Secretarial Fees 15,000.00 - Telephone 23,538.00 Printing & Stationery 1400.00 - Irrecoverable Balances Written-off 952,220.53 : Depreciation 44,593.75 4,985,268.66 FINANCE COSTS Bank Charges 41,955.74 16OUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS. FOR THE YEAR ENDED 318T MARCH 2019 2018 Rs. Rs. INCOME TAX EXPENSES Income Tax 204,456.00 40,057 Provision/ (Reversal) for Deferred Tax 10,142.00 214,598.00 40,057 EARNING PER SHARE Basic earnings per share is calculated by dividing the Net Profit for the year attributable to ordinary shareholders of the Company by the Number of Ordinary Shares, The following reflects the Income and Share data used in the Basic earnings per share computation, FOR THE YEAR ENDED 31ST MARCH 2019 2018 Amount used as the Numerator Net Profit Attributable to Ordinary Shareholders of the Company Rs. 13,892,687.07 507464 Amount used as the Denominator Weighted Number of Ordinary Shares 100 100 Earnings Per Share WwOUT OF HOME DiGrraL PVT) LIMITED, NOTES TO THE FINANCIAL STATEMENTS, 10 PROPERTY, PLANT & EQUIPMENT. WDv. asat Depreciation for asat 10.1 AtCost. oyo42018 Additions the year 313/201 Freehold Assets Rs. Re, Re. Rs, ‘Computers & Equipment +198,100.00 i eee ‘eee ‘Mobile Phones 6,000.00 ft cia seo = i 55,300.00 (8568.75) 46,731.25 Tag 55,800.00 (44,598.75) 154,806.25 [Net Book Value 144,10 154,806.25 18n n 1“ 18 OUT OF HOME DIGITAL (PVT) "TO THE FINANCIAL STATEMENTS AS AT3IST MARCH ‘TRADE & OTHER RECEIVABLES ‘Trade Debtors Staff Loans & Festival Advances (CASH EMBEZZLEMENT BY ACCOUNTANT 5. Tinneshantha OTHER CURRENT ASSETS Nokia Project CASH & CASH EQUIVALENTS ‘Sampath Bank - Web Card ‘Sampath Bank - Credit Card Nations Trust Bank -Saving A/c Sampath Bank - 016 Nations Trust Bank 1-117 Nations Trust Bank 2-728 Hatton National Bank - 8221 Cash in hand STATED CAPITAL Ordinary Shares Number of Shares 19 LIMITED 2019 Ws, 15,215,587.04 15,215 587.04 8,881,705.94 8,881,705.98 31,055.00, 898.50 2,040,464.53 18,268.16 5,334.00 20a, 1,000.00 1,000.00 | 2018 Rs. 1,155,248, 5,000, 1,160,248 814383 14,383 683,495 41,629 20,809 21,055 40,619 2,107,352 9684 2,924,643QUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS: AS AT 31ST MARCH 2019 2018 Notes Rs. Rs. 16 DEFERRED TAX LIABILITY Balance at the beginning of the year - ‘Charge/ (Reversal) for the year 10,142.00 Balance at the end of the year 10,142.00 z 17 TRADE & OTHER PAYABLES Accrued Expenses & Other Payables qa 2,719,345.82 285,888 7.719,305.82 286, 171 ACCRUED EXPENSES & OTHER PAYABLES Audit Pees 75,000.00 500 Accountancy Charges 360,000.00 : Salary 655231247 171,989 Commission : 25,938 EPF 576,789.00 36,053 BI 86,518.35 5A08 PAYE, 68,726.00 a 7,719,395.82 286,888 20OUT OF HOME DIGITAL (PVT) LIMITED NOTES TO THE FINANCIAL STATEMENTS. AS AT 31ST MARCH 2019 2018 Rs. INCOME TAX PAYABLE Atthe beginning of the year 40,056.59 : Provision made during the year 204,456.00 40,057 Taxes Paid during the year (40,057.00) Balance at the end of the year 204,455.59 AMOUNTS DUE TO RELATED PARTIES Emerging Media (Pvt) Ltd 8,079,075.00 8,334,075, Out of Home Media (Pvt) Ltd. 489,473.00 429,473 Bus TV (Pv) Lid, 146,038.00 146,038 Medi TV (Pvt) Ltd 160,000.00 160,000 8,874,586.00 9,069,586 FINANCIAL INSTR Financial Assets & Liabilities by Categories Financial Assets & Liabilities are split into following categorie Financial Assets by Categories Financial Instruments in Current Assets, ‘Trade & Other Receivables 15,215 587.04 1,160,248 Cash & Cash Equivalents 2,095,96019_ 2,924,643 4,084,891 ‘Total For Financial Assets, the carrying amount and fair value are equal Financial Liabilities by Categorie Financial Instruments in Current Liabilities Trade & Other Payables 71934582 286,888 Amounts due to Related Parties 8,874,586.00 91069,586_ 16,593,931.82 356474 21OUT OF HOME DIGITAL (PVT) LIMITED STATEMENT OF ADJUSTED PROFIT FOR INCOME TAX ‘YEAR OF ASSESSMENT 2018/2019 Notes Rs, Net Profit, (Loss) - As per Accounts Add: Amounts Disallowed Inrecoverable Balances Written-off 952,221 Depreciation 44, Le Amounts Claimed Capital Allowance on Assets Acquired Prior to 01/04/2018 1 35,725 Capital Allowance on Assets Acquired on or After 01/04/2018 2) 11,060 Cash Embezzlement By Accountant 3 8,881,706 Adjusted Income from Business Loss Claimed during the year Assessable/ Taxable Income for the year Tax @ 4% ‘Total Tax Liabil Final E Balance Tax Payable / (Refund) Rs. 14,107,285 996,814 15,104,099 (3.928491) 6,175,608 (4,715,205) 1,460,403 204,456 204,456OUT OF HOME DIGITAL (PV) LIMITED COMPUTATION OF INCOME TAX ‘YEAR OF ASSESSMENT 2018/2019 NOTE 4 -- CAPITAL ALLOWANCE ON ASSETS ACQUIRED PRIOR TO 01/04/2018 Depreciation Allowance Claimed for the Assets Cost % year Re. Re, Computer Equipment 138,100 25% 3 34525 Mobile Phones 6000 = 20% 2 1,200 35,725 NOTE? -- CAPITAL Al OWANCE ON ASSETS ACQUIRED ON OR AFTER 01ST APRIL2018 Capital Allowance Acquisition Year Claim during the Cost Claimed yeat Re, Re, 2018/2019 - 1st year Office Equipment Furniture & Fittings 55200 20% 1 1,060 11,060 ASH EMBEZZLEMENT BY ACCOUNTANT Te Accountant has misappropriated sum of Rs. § 881,706/= during the year. The 881,706 Company has filed a legal action against him to recover this loss, The Company agrees to pay income taxes at the point of recovery of this loss. Tax Loss Carried Forward from 2017/2018 4,715,205 Add: Loss for the year y Less: Claimed during the year 715,208) Tax Loss Carried Forward to 2019/2020