Mar 31, 2015
(i) Background
The Company is promoted by Shri Gordhan P. Tanwani and is in the
business of Film Production, Distribution, TV Serial Production,
trading of Intellectual Property Rights and Post Production Activities.
The Registered Office of the Company is at 3A, Valecha Chambers, New
Link Road, Andheri (West), Mumbai -400053
(ii) (a) Basis of preparation
The Financial Statements have been prepared to comply in all material
respects with the Accounting Standards prescribed under Section 133 of
the Companies Act, 2013("the Act") read with rule 7 of the Companies
(Accounts) Rules, 2014 and the relevant provisions of the Companies
Act, 2013. The Financial statements are prepared under historical cost
convention on an accrual basis of accounting in accordance except where
impairment is made The Accounting policies have been consistently
applied by the Company and are consistent with those used in the
previous year.
(b) Use of estimates
The Preparation of financial statements in conformity with GAAP
(Generally Accepted Accounting Policies) requires that the Management
of the Company makes estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the result of
operations during the reporting period. Although these estimates are
based upon management's best knowledge of current events and actions,
actual results could differ from these estimates.
(iii) Revenue Recognition
a. Revenue from Post Production activities is based on machine hours
spent and is net of service tax.
b. Revenue from trading in satellite rights is recognized on its sales
or on exploitation contract.
c. Revenue is recognized to the extent it is probable that the
economic benefit will flow to the Company and the revenue can be
reliably measured.
d. The Company deals in Intellectual Property Rights (IPR) of films;
in case of sale of IPR of films/ receipts/ income (including interest
on advance payments made) to the Company are subject to certain
conditions, eventualities and uncertainties.
e. The receipts/ income (including interest on advance payments made)
are deemed to accrue as and when events take place or conditions are
fulfilled or uncertainties are removed. Accordingly such income
(including interest on advance payment made) is accounted only after
the events take place or conditions are fulfilled or uncertainties are
removed. This is in accordance with Accounting Standard in respect of
recognition of revenue and prudential norms.
f. In respect of Cinematic & Television content produced / acquired,
income is recognized on the following basis :
i. In respect of Cinematic & Television content, which is not complete
i.e. under production, no income is recognized.
ii. In respect of Cinematic & Television content, which is complete
but not released, income is recognized as - so much of the estimated
income on release as bears to the whole of the estimated income in the
same proportion as the actual recoveries / realizations / confirmed
contracts bears to the total expected realization.
iii. In respect of Cinematic content completed and released during the
year, income is recognized on release / delivery of release prints
except income, if any, already recognized as per clause f (ii).
iv. In respect of Cinematic content, which is complete but not
released, income from streams other than theatrical release is
recognized on the basis of contracts / deal memo and delivery of Digi
Betas.
(iv) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation/
amortization and impairment losses if any. Cost comprises of purchase
price, allocated pre - operative costs and any attributable cost of
bringing the asset to its working condition for its intended use.
(v) Depreciation
a. Depreciation on fixed assets is provided on Straight Line Method at
the rate prescribed in Schedule II to the Companies Act, 2013 over the
estimated useful life as estimated by the Management.
b. Depreciation is charged on a pro - rata basis for assets purchased/
sold during the year (from the date on which it is 'Put to Use').
c. Depreciation on impaired assets is provided by adjusting the
depreciation charge in the remaining periods so as to allocate the
revised carrying amount of the asset over its remaining useful life.
The recoverable amount is measured at the higher of the net selling
price and value in use; determined by present value of estimated cash
flows.
(vi) Impairment
The carrying amount of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal / external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its estimated recoverable amount. The recoverable
amount is greater of asset's net selling price and value in use. In
assessing the value in use, the estimated future cash flows are
discounted to the present value at the weighted average cost of
capital. Previously recognized impairment loss is further provided or
reversed depending on changes in circumstances.
(vii) Inventories
a. Consumables
Consumables are valued at lower of cost and market value.
b. Intellectual Property Rights (Copy Rights)
IPR of films are valued at lower of cost or net realizable value as
certified by the Management.
c. Under Production Films / Television Serials
Cost of films are valued at actual cost incurred/ accrued which
includes amount paid, bills settled and advance paid for which the
bills are awaited.
In case of films which are released during the year, the realization
from the sale of rights are reduced from the cost of production and the
balance cost if any, is carried forward till the time the negative
rights of the films are not exploited. The excess or deficit of the
cost of production after exploitation of "negative" rights will be
treated as profit or loss in the profit & loss a/c as the case may be.
Inventory of Television Serials is valued at actual cost. The cost of
content is amortised in the ratio of current revenue to expected total
revenue. At the end of each accounting period, balance unamortized cost
is compared with the net expected revenue. If net expected revenue is
less than the unamortized cost, the same is written down to net
expected revenue.
The Company is engaged in business of production of films wherein the
expected operating cycle for production is in the range of 18 to 24
months. Accordingly Inventory (under production films) / Advances /
Assets / Liabilities relating to film production are classified as
Current Assets / Liabilities.
(viii) Taxation
a. Current tax: Provision for current tax( Income Tax and Wealth Tax)
for the year has been made after considering deduction / allowances /
claims admissible to the Company under the Income Tax Act, 1961.
b. Deferred Tax:
(i) Deferred tax is recognized on timing differences; being difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
(ii) It is measured based on the tax rates and the tax laws enacted or
substantively enacted at the Balance sheet date.
(ii) Deferred tax assets arising from temporary timing differences are
recognized to the extent there is reasonable certainty that the assets
can be realized in future.
(iv) Deferred tax assets in respect of unabsorbed depreciation and
carry forward of losses are recognized if there is virtual certainty
that there will be sufficient future taxable income available to
realize such losses.
(ix) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets or production of films are
capitalized as a part of cost of such assets. A qualifying asset is one
that necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the Statement of
Profit and Loss in the period in which they are incurred.
(x) Foreign Currency Transactions
a. Transactions in Foreign Currency are recorded at the rate
prevailing on the date when the amount is received or remitted.
b. Foreign currency assets and liabilities are converted into rupee at
the exchange rate prevailing on the balance sheet date; gains/ losses
are reflected in the profit and loss account.
c. Exchange difference on account of acquisition of fixed assets is
adjusted to carrying cost of fixed assets.
(xi) Investments
Investments are considered as long term and are accordingly stated at
cost less provision, if any, for permanent diminution in value of such
investments.
(xii) Employee Benefits
a. Defined Contribution Plan: Contributions to Provident Fund and ESIC
are recognized / provided as expense in the Profit and Loss Account, on
accrual basis.
b. Defined Benefit Plan and Other Long Term Benefits: Retirement
benefits in form of gratuity and other long term benefits in form of
leave encashment are determined on the basis of actuarial valuation.
Actuarial gains / losses are recognized immediately in the Profit and
Loss Account.
c. Short term compensated absences are provided based on past
experience of leave availed.
(xiii) Cash and Cash equivalents
Cash and cash equivalents for the purpose of Cash Flow Statement
comprise cash at bank including Fixed Deposits, cash in hand and cash
at film sets.
(xiv) Contingencies / Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate required to settle the obligation at the Balance Sheet date.
These are reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates. A contingent liability is disclosed, unless
the possibility of an outflow of resources embodying the economic
benefit is remote.
(xv) Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
(xvi) Service Tax
Service Tax liability is accounted on accrual basis. The Company is
accounting liability for service tax arising under reverse charge
mechanism for various services availed by the Company, at the time of
booking of relevant expenditure. Credit for input service tax is
claimed as per appropriate laws, rules and regulations.
Mar 31, 2014
(i) Background
The Company is promoted by Shri Gordhan P Tanwani and is in the
business of Film Production, Distribution, TV Serial Production,
trading of Intellectual Property Rights and Post Production Activities.
The Registered Office of the Company is at 3A, Valecha Chambers, New
Link Road, Andheri (West), Mumbai -400053
(ii) (a) Basis of preparation
The Financial Statements have been prepared to comply in all material
respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The Financial statements are
prepared under historical cost convention on an accrual basis of
accounting in accordance except where impairment is made The Accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year.
(b) Use of estimates
The Preparation of financial statements in conformity with GAAP
(Generally Accepted Accounting Policies) requires that the Management
of the Company makes estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the result of
operations during the reporting period. Although these estimates are
based upon management''s best knowledge of current events and actions,
actual results could differ from these estimates.
(iii) Revenue Recognition
a. Revenue from Post Production activities is based on machine hours
spent and is net of service tax.
b. Revenue from trading in satellite rights is recognized on its sales
or on exploitation contract.
c. Revenue is recognized to the extent it is probable that the economic
benefit will flow to the Company and the revenue can be reliably
measured.
d. The Company deals in Intellectual Property Rights (IPR) of films, in
case of sale of IPR of films, receipts/ income (including interest on
advance payments made) to the company are subject to certain
conditions, eventualities and uncertainties.
e. The receipts/ income (including interest on advance payments made)
are deemed to accrue as and when events take place or conditions are
fulfilled or uncertainties are removed. Accordingly such income
(including interest on advance payment made) is accounted only after
the events take place or conditions are fulfilled or uncertainties are
removed. This is in accordance with Accounting Standard in respect of
recognition of revenue and prudential norms.
f. In respect of cinematic & Television content produced / acquired,
income is recognised on the following basis :
i. In respect of cinematic & Television content, which is not complete
i.e. under production, no income is recognised.
ii. In respect of cinematic & Television content, which is complete but
not released, income is recognised as - so much of the estimated income
on release as bears to the whole of the estimated income in the same
proportion as the actual recoveries / realisations / confirmed
contracts bears to the total expected realisation.
iii. In respect of cinematic content completed and released during the
year, income is recognised on release / delivery of release prints
except income, if any, already recognised as per clause f (ii).
iv. In respect of cinematic content, which is complete but not
released, income from streams other than theatrical release is
recognised on the basis of contracts / deal memo and delivery of Digi
Betas.
(iv) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation/
amortization and impairment losses if any. Cost comprises of purchase
price, allocated pre - operative costs and any attributable cost of
bringing the asset to its working condition for its intended use.
(v) Depreciation
a. Depreciation on fixed assets is provided on Straight Line Method at
the rate prescribed in Schedule XIV of the Companies Act, 1956 over the
estimated useful life as estimated by the Management.
b. Depreciation is charged on a pro - rata basis for assets purchased/
sold during the year (from the date on which it is ''Put to Use'').
c. Depreciation on impaired assets is provided by adjusting the
depreciation charge in the remaining periods so as to allocate the
revised carrying amount of the asset over its remaining useful life.
The recoverable amount is measured at the higher of the net selling
price and value in use; determined by present value of estimated cash
flows.
(vi) Impairment
The carrying amount of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal / external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its estimated recoverable amount. The recoverable
amount is greater of asset''s net selling price and value in use. In
assessing the value in use, the estimated future cash flows are
discounted to the present value at the weighted average cost of
capital. Previously recognized impairment loss is further provided or
reversed depending on changes in circumstances.
(vii) Inventories
a. Consumables
Consumables are valued at lower of cost and market value.
b. Intellectual Property Rights (Copy Rights)
IPR of films are valued at lower of cost or net realizable value as
certified by the Management.
c. Under Production Films / Television Serials
Cost of films are valued at actual cost incurred/ accrued which
includes amount paid, bills settled and advance paid for which the
bills are awaited.
In case of films which are released during the year, the realization
from the sale of rights are reduced from the cost of production and the
balance cost if any, is carried forward till the time the negative
rights of the films are not exploited. The excess or deficit of the
cost of production after exploitation of"negative" rights will be
treated as profit or loss in the profit & loss a/c as the case may be.
Inventory of Television Serials is valued at actual cost. The cost of
content is amortised in the ratio of current revenue to expected total
revenue. At the end of each accounting period, balance unamortized cost
is compared with the net expected revenue. If net expected revenue is
less than the unamortized cost, the same is written down to net
expected revenue.
The Company is engaged in business of production of films wherein the
expected Operating Cycle for production is in the range of 18 to 24
months. Accordingly Inventory (under production films) / Advances /
Assets / Liabilities relating to film production are classified as
Current Assets / Liabilities.
(viii) Taxation
a. Current tax: Provision for current tax( Income Tax and Wealth Tax)
for the year has been made after considering deduction / allowances /
claims admissible to the company under the Income Tax Act, 1961.
b. Deferred Tax: Deferred tax is recognized on timing differences;
being difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
c. It is measured based on the tax rates and the tax laws enacted or
substantively enacted at the Balance sheet date.
d. Deferred tax assets arising from temporary timing differences are
recognized to the extent there is reasonable certainty that the assets
can be realized in future.
e. Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognized if there is virtual certainty that
there will be sufficient future taxable income available to realize
such losses.
(ix) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets or production of films are
capitalized as a part of cost of such assets. A qualifying asset is one
that necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the Statement of
Profit and Loss in the period in which they are incurred.
(x) Foreign Currency Transactions
a. Transactions in Foreign Currency are recorded at the rate prevailing
on the date when the amount is received or remitted.
b. Foreign currency assets and liabilities are converted into rupee at
the exchange rate prevailing on the balance sheet date; gains/ losses
are reflected in the profit and loss account.
c. Exchange difference on account of acquisition of fixed assets is
adjusted to carrying cost of fixed assets.
(xi) Investments
Investments are considered as Long Term and are accordingly stated at
cost less provision, if any, for permanent diminution in value of such
investments.
(xii) Employee Benefits
a. Defined Contribution Plan: Contributions to Provident Fund and ESIC
are recognized / provided as expense in the Profit and Loss Account, on
accrual basis.
b. Defined Benefit Plan and Other Long Term Benefits: Retirement
benefits in form of gratuity and other long term benefits in form of
leave encashment are determined on the basis of actuarial valuation.
Actuarial gains / losses are recognized immediately in the Profit and
Loss Account.
c. Short term compensated absences are provided based on past
experience of leave availed.
(xiii)Cash and Cash equivalents
Cash and cash equivalents for the purpose of Cash Flow Statement
comprise cash at bank including Fixed Deposits, cash in hand and cash
at film sets.
(xiv) Contingencies / Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate required to settle the obligation at the Balance Sheet date.
These are reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates. A contingent liability is disclosed, unless
the possibility of an outflow of resources embodying the economic
benefit is remote.
(xv) Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
(xvi) Service Tax
Service Tax liability is accounted on accrual basis. The Company is
accounting liability for service tax arising under reverse charge
mechanism for various services availed by the company, at the time of
booking of relevant expenditure. Credit for input service tax is
claimed as per appropriate laws, rules and regulations.
Mar 31, 2013
(i) Background
The Company is promoted by Shri Gordhan P Tanwani and is in the
business of Film Production, Distribution, TV Serial Production,
trading of Intellectual Property Rights and Post Production Activities.
The Registered Office of the Company is at 3A, Valecha Chambers, New
Link Road, Andheri (West), Mumbai -400053
(ii) (a) Basis of preparation
The Financial Statements have been prepared to comply in all material
respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The Financial statements are
prepared under historical cost convention on an accrual basis of
accounting in accordance except where impairment is made The Accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year.
(b) Use of estimates
The Preparation of financial statements in conformity with GAAP
(Generally Accepted Accounting Policies) requires that the Management
of the Company makes estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the result of
operations during the reporting period. Although these estimates are
based upon management''s best knowledge of current events and actions,
actual results could differ from these estimates.
(iii) Revenue Recognition
a. Revenue from Post Production activities is based on machine hours
spent and is net of service tax.
b. Revenue from trading in satellite rights is recognized on its sales
or on exploitation contract.
c. Revenue is recognized to the extent it is probable that the
economic benefit will flow to the Company and the revenue can be
reliably measured.
d. The Company deals in Intellectual Property Rights (IPR) of films,
in case of sale of IPR of films, receipts/ income (including interest
on advance payments made) to the Company are subject to certain
conditions, eventualities and uncertainties.
e. The receipts/ income (including interest on advance payments made)
are deemed to accrue as and when events take place or conditions are
fulfilled or uncertainties are removed. Accordingly such income
(including interest on advance payment made) is accounted only after
the events take place or conditions are fulfilled or uncertainties are
removed. This is in accordance with Accounting Standard in respect of
recognition of revenue and prudential norms.
f. In respect of cinematic & Telvision content produced / acquired,
income is recognised on the following basis :
i. In respect of cinematic & Television content, which is not complete
i.e. under production, no income is recognised.
ii. In respect of cinematic & Television content, which is complete but
not released, income is recognised as - so much of the estimated income
on release as bears to the whole of the estimated income in the same
proportion as the actual recoveries / realisations / confirmed
contracts bears to the total expected realisation.
iii. In respect of cinematic content completed and released during the
year, income is recognised on release / delivery of release prints
except income, if any, already recognised as per clause f (ii).
iv. In respect of cinematic content, which is complete but not
released, income from streams other than theatrical release is
recognised on the basis of contracts / deal memo and delivery of Digi
Betas.
(iv) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation/
amortization and impairment losses if any. Cost comprises of purchase
price, allocated pre - operative costs and any attributable cost of
bringing the asset to its working condition for its intended use.
(v) Depreciation
a. Depreciation on fixed assets is provided on Straight Line Method at
the rate prescribed in Schedule XIV of the Companies Act, 1956 over the
estimated useful life as estimated by the Management.
b. Depreciation is charged on a pro - rata basis for assets purchased/
sold during the year (from the date on which it is ''Put to Use'').
c. Depreciation on impaired assets is provided by adjusting the
depreciation charge in the remaining periods so as to allocate the
revised carrying amount of the asset over its remaining useful life.
The recoverable amount is measured at the higher of the net selling
price and value in use; determined by present value of estimated cash
flows.
(vi) Impairment
The carrying amount of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal / external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its estimated recoverable amount. The recoverable
amount is greater of asset''s net selling price and value in use. In
assessing the value in use, the estimated future cash flows are
discounted to the present value at the weighted average cost of
capital. Previously recognized impairment loss is further provided or
reversed depending on changes in circumstances.
(vii) Inventories
a. Consumables
Consumables are valued at lower of cost and market value.
b. Intellectual Property Rights (Copy Rights)
IPR of films are valued at lower of cost or net realizable value as
certified by the Management.
c. Under Production Films
Cost of films are valued at actual cost incurred/ accrued which
includes amount paid, bills settled and advance paid for which the
bills are awaited.
In case of films which are released during the year, the realization
from the sale of rights are reduced from the cost of production and the
balance cost if any, is carried forward till the time the negative
rights of the films are not exploited. The excess or deficit of the
cost of production after exploitation of "negative" rights will be
treated as profit or loss in the profit & loss a/c as the case may be.
Inventory of Television Serials is valued at actual cost. The cost of
content is amortised in the ratio of current revenue to expected total
revenue. At the end of each accounting period, balance unamortized cost
is compared with the net expected revenue. If net expected revenue is
less than the unamortized cost, the same is written down to net
expected revenue.
The Company is engaged in business of production of films wherein the
expected Operating Cycle for production is in the range of 18 to 24
months. Accordingly Inventory (under production films) /Advances
/Assets / Liabilities relating to film production are classified as
Current Assets / Liabilities.
(viii) Taxation
a. Current tax: Provision for current tax( Income Tax and Wealth Tax)
for the year has been made after considering deduction / allowances /
claims admissible to the company under the Income Tax Act, 1961.
b. Deferred Tax: Deferred tax is recognized on timing differences;
being difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
c. It is measured based on the tax rates and the tax laws enacted or
substantively enacted at the Balance sheet date.
d. Deferred tax assets arising from temporary timing differences are
recognized to the extent there is reasonable certainty that the assets
can be realized in future.
e. Deferred tax assets in respect of unabsorbed depreciation and cany
forward of losses are recognized if there is virtual certainty that
there will be sufficient future taxable income available to realize
such losses.
(ix) Foreign Currency Transactions
a. Transactions in Foreign Currency are recorded at the rate
prevailing on the date when the amount is received or remitted.
b. Foreign currency assets and liabilities are converted into rupee at
the exchange rate prevailing on the balance sheet date; gains/ losses
are reflected in the profit and loss account.
c. Exchange difference on account of acquisition of fixed assets is
adjusted to carrying cost of fixed assets.
(x) Investments
Investments are considered as Long Term and are accordingly stated at
cost less provision, if any, for permanent diminution in value of suoh
investments.
(xi) Employee Benefits
a. Defined Contribution Plan: Contributions to Provident Fund and ESIC
are recognized / provided as expense in the Profit and Loss Account, on
accrual basis.
b. Defined Benefit Plan and Other Long Term Benefits: Retirement
benefits in form of gratuity and other long term benefits in form of
leave encashment are determined on the basis of actuarial valuation.
Actuarial gains / losses are recognized immediately in the Profit and
Loss Account.
c. Short term compensated absences are provided based on past
experience of leave availed.
(xii) Cash and Cash equivalents
Cash and cash equivalents for the purpose of Cash Flow Statement
comprise cash at bank including Fixed Deposits, cash in hand and cash
at film sets.
(xiii) Conti ngencies / Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate required to settle the obligation at the Balance Sheet date.
These are reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates. A contingent liability is disclosed, unless
the possibility of an outflow of resources embodying the economic
benefit is remote.
(xiv)Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
Mar 31, 2012
(i) Background
The Company is promoted by Shri Gordhan P Tanwani and is in the
business of Film Production, Distribution, trading of Intellectual
Property Rights and Post Production Activities.
The Registered Office of the company at 3A, Valecha Chambers, New Link
Road, Andheri (West ), Mumbai -400053
(ii) (a) Basis of preparation
The Financial Statements have been prepared to comply in all material
respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The Financial statements are
prepared under historical cost convention on an accrual basis of
accounting in accordance except where impairment is made The Accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year.
(b) Use of estimates
The Preparation of financial statements in conformity with GAAP
(Generally Accepted Accounting Policies) requires that the Management
of the Company makes estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the result of
operations during the reporting period. Although these estimates are
based upon management's best knowledge of current events and actions,
actual results could differ from these estimates.
(iii) Revenue Recognition
a. Revenue from Post Production activities is based on machine hours
spent and is net of service tax.
b. Revenue from trading in satellite rights is recognized on its sales
or on exploitation contract.
c. Revenue is recognized to the extent it is probable that the
economic benefit will flow to the Company and the revenue can be
reliably measured.
d. The Company deals in Intellectual Property Rights (IPR) of films,
in case of sale of IPR of films, receipts/ income (including interest
on advance payments made) to the company are subject to certain
conditions, eventualities and uncertainties.
e. The receipts/ income (including interest on advance payments made)
are deemed to accrue as and when events take place or conditions are
fulfilled or uncertainties are removed. Accordingly such income
(including interest on advance payment made) is accounted only after
the events take place or conditions are fulfilled or uncertainties are
removed. This is in accordance with Accounting Standard in respect of
recognition of revenue and prudential norms.
f. In respect of cinematic content produced / acquired, income is
recognised on the following basis :
i. In respect of cinematic content, which is not complete i.e. under
production, no income is recognised.
ii. In respect of cinematic content, which is complete but not
released, income is recognised as - so much of the estimated income on
release as bears to the whole of the estimated income the same
proportion as the actual recoveries / realisations / confirmed
contracts bears to the total expected realisation.
iii. In respect of cinematic content completed and released during the
year, income is recognised on release / delivery of release prints
except income, if any, already recognised as per clause f (ii).
iv. In respect of cinematic content, which is complete but not
released, income from streams other than theatrical release is
recognised on the basis of contracts / deal memo and delivery of Digi
Betas.
(iv) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation/
amortization and impairment losses if any. Cost comprises of purchase
price, allocated pre - operative costs and any attributable cost of
bringing the asset to its working condition for its intended use.
(v) Depreciation
a. Depreciation on fixed assets is provided on Straight Line Method at
the rate prescribed in Schedule XIV of the Companies Act, 1956 over the
estimated useful life as estimated by the Management.
b. Depreciation is charged on a pro - rata basis for assets purchased/
sold during the year (from the date on which it is 'Put to Use').
c. Depreciation on impaired assets is provided by adjusting the
depreciation charge in the remaining periods so as to allocate the
revised carrying amount of the asset over its remaining useful life.
The recoverable amount is measured at the higher of the net selling
price and value in use; determined by present value of estimated cash
flows.
(vi) Impairment
The carrying amount of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal / external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its estimated recoverable amount. The recoverable
amount is greater of asset's net selling price and value in use. In
assessing the value in use, the estimated future cash flows are
discounted to the present value at the weighted average cost of
capital. Previously recognized impairment loss is further provided or
reversed depending on changes in circumstances.
(vii) Inventories
a. Consumables
Consumables are valued at lower of cost and market value.
b. Intellectual Property Rights (Copy Rights)
IPR of films are valued at lower of cost or net realizable value as
certified by the Management.
c. Under Production Films
Cost of films are valued at actual cost incurred/ accrued which
includes amount paid, bills settled and advance paid for which the
bills are awaited.
In case of films which are released during the year, the realization
from the sale of rights are reduced from the cost of production and the
balance cost if any, is carried forward till the time the negative
rights of the films are not exploited. The excess or deficit of the
cost of production after exploitation of "negative" rights will be
treated as profit or loss in the profit & loss a/c as the case may be.
The Company is engaged in business of production of films wherein the
expected Operating Cycle for production is in the range of 18 to 24
months. Accordingly Inventory (under production films) / Advances /
Assets / Liabilities relating to film production are classified as
Current Assets / Liabilities.
(viii)Taxation
a. Current tax: Provision for current tax( Income Tax and Wealth Tax)
for the year has been made after considering deduction / allowances /
claims admissible to the company under the Income Tax Act, 1961.
b. Deferred Tax: Deferred tax is recognized on timing differences;
being difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
c. It is measured based on the tax rates and the tax laws enacted or
substantively enacted at the Balance sheet date.
d. Deferred tax assets arising from temporary timing differences are
recognized to the extent there is reasonable certainty that the assets
can be realized in future.
e. Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognized if there is virtual certainty that
there will be sufficient future taxable income available to realize
such losses.
(ix) Foreign Currency Transactions
a. Transactions in Foreign Currency are recorded at the rate
prevailing on the date when the amount is received or remitted.
b. Foreign currency assets and liabilities are converted into rupee at
the exchange rate prevailing on the balance sheet date; gains/ losses
are reflected in the profit and loss account.
c. Exchange difference on account of acquisition of fixed assets is
adjusted to carrying cost of fixed assets.
(x) Investments
Investments are considered as Long Term and are accordingly stated at
cost less provision, if any, for permanent diminution in value of such
investments.
(xi) Employee Benefits
a. Defined Contribution Plan: Contributions to Provident Fund and ESIC
are recognized / provided as expense in the Profit and Loss Account, on
accrual basis.
b. Defined Benefit Plan and Other Long Term Benefits: Retirement
benefits in form of gratuity and other long term benefits in form of
leave encashment are determined on the basis of actuarial valuation.
Actuarial gains / losses are recognized immediately in the Profit and
Loss Account.
c. Short term compensated absences are provided based on past
experience of leave availed.
(xii) Cash and Cash equivalents
Cash and cash equivalents for the purpose of Cash Flow Statement
comprise cash at bank including Fixed Deposits, cash in hand and cash
at film sets.
(xiii) Contingencies / Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate required to settle the obligation at the Balance Sheet date.
These are reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates. A contingent liability is disclosed, unless
the possibility of an outflow of resources embodying the economic
benefit is remote.
(xiv)Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
Mar 31, 2011
1. (a) Basis of preparation
The Financial Statements have been prepared to comply in all material
respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The Financial statements are
prepared under historical cost convention on an accrual basis of
accounting except where impairment is made. The Accounting policies
have been consistently applied by the company and are consistent with
those used in the previous year.
(b) Use of estimates
The preparation of financial statements in conformity with GAAP
(Generally Accepted Accounting Policies) requires that the management
of the Company makes estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the result of
operations during the reporting period. Although these estimates are
based upon management's best knowledge of current events and actions,
actual results could differ from these estimates.
2. Revenue Recognition
a. Revenue from Post Production activities is based on machine hours
spent and is net of service tax.
b. Revenue from trading in satellite rights is recognized on its sales
or on exploitation contract.
c. Revenue is recognized to the extent it is probable that the
economic benefit will flow to the company and the revenue can be
reliably measured.
d. The company deals in Intellectual Property Rights (IPR) of films,
in case of sale of IPR of films, receipts/ income (including interest
on advance payments made) to the company are subject to certain
conditions, eventualities and uncertainties.
e. The receipts/ income (including interest on advance payments made)
are deemed to accrue as and when events take place or conditions are
fulfilled or uncertainties are removed. Accordingly such income
(including interest on advance payment made) is accounted only after
the events take place or conditions are fulfilled or uncertainties are
removed. This is in accordance with Accounting Standard in respect of
recognition of revenue and prudential norms.
f. In respect of cinematic content produced / acquired, income is
recognised on the following basis :
i. In respect of cinematic content, which is not complete i.e. under
production, no income is recognised.
ii. In respect of cinematic content, which is complete but not
released, income is recognized as à so much of the estimated income on
release as bears to the whole of the estimated income the same
proportion as the actual recoveries / realizations / confirmed
contracts bears to the total expected realisation.
iii. In respect of cinematic content completed and released during the
year, income is recognized on release / delivery of release prints
except income, if any, already recognized as per clause f (ii).
iv. In respect of cinematic content, which is complete but not
released, income from streams other than theatrical release is
recognised on the basis of contracts / deal memo and delivery of Digi
Betas.
3. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation/
amortization and impairment losses if any. Cost comprises of purchase
price, allocated pre à operative costs and any attributable cost of
bringing the asset to its working condition for its intended use.
4. Depreciation
a. Depreciation on fixed assets is provided on Straight Line Method at
the rate prescribed in Schedule XIV of the Companies Act, 1956 over the
estimated useful life as estimated by the Management.
b. Depreciation is charged on a pro à rata basis for assets purchased/
sold during the year (from the date on which it is ÃPut to Use').
c. Depreciation on impaired assets is provided by adjusting the
depreciation charge in the remaining periods so as to allocate the
revised carrying amount of the asset over its remaining useful life.
The recoverable amount is measured at the higher of the net selling
price and value in use; determined by present value of estimated cash
flows.
5. Impairment
The carrying amount of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal / external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its estimated recoverable amount. The recoverable
amount is greater of asset's net selling price and value in use. In
assessing the value in use, the estimated future cash flows are
discounted to the present value at the weighted average cost of
capital. Previously recognized impairment loss is further provided or
reversed depending on changes in circumstances.
6. Inventories
a. Consumables
Consumables are valued at lower of cost and market value.
b. Intellectual Property Rights (Copy Rights)
IPR of films are valued at lower of cost or net realizable value as
certified by the management.
c. Under Production Films
Cost of films are valued at actual cost incurred/ accrued which
includes amount paid, bills settled and advance paid for which the
bills are awaited.
In case of films which are released during the year, the realization
from the sale of rights are reduced from the cost of production and the
balance cost if any, is carried forward till the time the negative
rights of the films are not exploited. The excess or deficit of the
cost of production after exploitation of "negative" rights will be
treated as profit or loss in the profit & loss a/c as the case may be.
7. Taxation
a. Current tax: Provision for current tax ( Income Tax and Wealth Tax)
for the year has been made after considering deduction / allowances /
claims admissible to the company under the Income Tax Act, 1961.
b. Deferred Tax: Deferred tax is recognized on timing differences;
being difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
c. It is measured based on the tax rates and the tax laws enacted or
substantively enacted at the Balance sheet date.
d. Deferred tax assets arising from temporary timing differences are
recognized to the extent there is reasonable certainty that the assets
can be realized in future.
e. Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognized if there is virtual certainty that
there will be sufficient future taxable income available to realize
such losses.
8. Foreign Currency Transactions
a. Transactions in Foreign Currency are recorded at the rate
prevailing on the date when the amount is received or remitted.
b. Foreign currency assets and liabilities are converted into rupee at
the exchange rate prevailing on the balance sheet date; gains/ losses
are reflected in the profit and loss account.
c. Exchange difference on account of acquisition of fixed assets is
adjusted to carrying cost of fixed assets.
9. Investments
Investments are considered as Long Term and are accordingly stated at
cost less provision, if any, for permanent diminution in value of such
investments.
10. Miscellaneous Expenditure
The share issue expenses and expenses in connection with the formation
of the company were treated as preliminary expenses, amortized over a
period of five years.
11. Employee Benefits
a. Defined Contribution Plan: Contributions to Provident Fund and ESIC
are recognized / provided as expense in the Profit and Loss Account, on
accrual basis.
b. Defined Benefit Plan and Other Long Term Benefits: Retirement
benefits in form of gratuity and other long term benefits in form of
leave encashment are determined on the basis of actuarial valuation.
Actuarial gains / losses are recognized immediately in the Profit and
Loss Account.
c. Short term compensated absences are provided based on past
experience of leave availed.
12. Cash and Cash equivalents
Cash and cash equivalents for the purpose of Cash Flow Statement
comprise cash at bank, in hand and cash at film sets.
13. Contingencies / Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate required to settle the obligation at the Balance Sheet date.
These are reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates. A contingent liability is disclosed, unless
the possibility of an outflow of resources embodying the economic
benefit is remote.
14. Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
Mar 31, 2010
1. (a) Basis of Accounting
The Financial statements are prepared under historical cost convention
on an accrual basis of accounting in accordance with the generally
accepted accounting principles, on going concern basis, and in line
with accounting standards issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Act, 1956
(b) The Preparation of financial statements in conformity with GAAP
(Generally Accepted Accounting Policies) requires that the Management
of the Company makes estimates and assumptions that affect the reported
amounts of income and expenses of the period, the reported balances of
assets and liabilities and the assumptions relating to contingent
liabilities as on the date of financial statements. Examples of such
estimates include the useful life of tangible and intangible fixed
assets, provision for doubtful debts / advances, future obligation in
respect of retirement benefit plans, etc. Difference, if any, between
the actual results and estimates is recognized in the period in which
the results are known.
2. Revenue Recognition
a. Revenue from Post Production activities is based on machine hours
spent and is net of service tax.
b. Revenue from trading in satellite rights is recognized on its sales
or on exploitation contract.
c. Revenue is recognized to the extent it is probable that the
economic benefit will flow to the Company and the revenue can be
reliably measured.
d. The Company deals in Intellectual Property Rights (IPR) of films,
in case of sale of IPR of films, receipts/ income (including interest
on advance payments made) to the company are subject to certain
conditions, eventualities and uncertainties.
e. The receipts/ income (including interest on advance payments made)
are deemed to accrue as and when events take place or conditions are
fulfilled or uncertainties are removed. Accordingly such income
(including interest on advance payment made) is accounted only after
the events take place or conditions are fulfilled or uncertainties are
removed. This is in accordance with Accounting Standard in respect of
recognition of revenue and prudential norms.
f. In respect of cinematic content produced / acquired, income is
recognised on the following basis :
i. In respect of cinematic content, which is not complete i.e. under
production, no income is recognised.
ii. In respect of cinematic content, which is complete but not
released, income is recognised as - so much of the estimated income on
release as bears to the whole of the estimated income the same
proportion as the actual recoveries / realisations / confirmed
contracts bears to the total expected realisation.
iii. In respect of cinematic content completed and released during the
year, income is recognised on release/ delivery of release prints
except income, if any, already recognised as per clause f (ii).
iv. In respect of cinematic content, which is complete but not
released, income from streams other than theatrical release is
recognised on the basis of contracts / deal memo and delivery of Digi
Betas.
3. Fixed Assets
Fixed assets are stated at cost less Depreciation. Cost comprises of
purchase price, allocated pre - operative costs and any attributable
cost of bringing the asset to its working condition for its intended
use.
4. Depreciation
a. Depreciation on fixed assets is provided on Straight Line Method at
the rate prescribed in Schedule XIV of the Companies Act, 1956 over the
estimated useful life as estimated by the Management.
b. Depreciation is charged on a pro - rata basis for assets purchased/
sold during the year (from the date on which it is Put to Use).
c. Depreciation on impaired assets is provided by adjusting the
depreciation charge in the remaining periods so as to allocate the
revised carrying amount of the asset over its remaining useful life.
The recoverable amount is measured at the higher of the net selling
price and value in use; determined by present value of estimated cash
flows.
5. Inventories
a. Consumables
Consumables are valued at lower of cost and market value.
b. Intellectual Property Rights (Copy Rights)
IPR of films are valued at lower of cost or net realizable value as
certified by the Management.
c. Under Production Films
Cost of films are valued at actual cost incurred/ accrued which
includes amount paid, bills settled and advance paid for which the
bills are awaited.
In case of films which are released during the year, the realization
from the sale of rights are reduced from the cost of production and the
balance cost if any, is carried forward till the time the negative
rights of the films are not exploited. The excess or deficit of the
cost of production after exploitation of "negative" rights will be
treated as profit or loss in the profit & loss a/c as the case may be.
6. Taxation
a. Current tax : Provision for current tax for the year has been made
after considering deduction/ allowances/ claims admissible to the
company under the Income Tax Act, 1961.
b. Deferred Tax : Deferred tax is recognized on timing differences,
being difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
c. It is measured using relevant enacted tax rates.
d. Deferred tax assets arising from temporary timing differences are
recognized to the extent there is reasonable certainty that the assets
can be realized in future.
e. Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognized if there is virtual certainty that
there will be sufficient future taxable income available to realize
such losses.
7. Foreign Currency Transactions
a. Transactions in Foreign Currency are recorded at the rate
prevailing on the date when the amount is received or remitted.
b. Foreign currency assets and liabilities are converted into rupee at
the exchange rate prevailing on the balance sheet date; gains/ losses
are reflected in the profit and loss account.
c. Exchange difference on account of acquisition of fixed assets is
adjusted to carrying cost of fixed assets.
8. Investments
Investments are considered as Long Term and are accordingly stated at
cost less provision, if any, for permanent diminution in value of such
investments.
9. Miscellaneous Expenditure
The share issue expenses and expenses in connection with the formation
of the company were treated as preliminary expenses, amortized over a
period of five years.
10. Employee Benefits
Contributions to Provident Fund and Family Pension Fund are provided on
accrual basis and charged to revenue. The Company has provided for
Gratuity Liability based on actuarial valuation.