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Accounting Policies of Broadcast Initiatives Ltd. Company

Mar 31, 2015

1.01 Basis for preparation of Financial Statements

The financial statements have been prepared under the historical cost convention ignoring, if any, purchasing power of money and on accounting principles of "going concern". All income and expenditure having a material bearing on the financial statements are recognized on accrual basis. Pursuant to section 133 of the Companies Act 2013 read with rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notifies under the Companies Act 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under sections211(3C) of the Companies Act 1956 (Companies (Accounting Standard) Rules,2006, as amended ) and other relevant provisions of the Companies Act 2013.

The Company's operating results continue to be materially affected by various factors such as increasing carriage cost, human resource cost etc. The Company has continuously implemented various measures such as improving operational efficiencies; renegotiation of contracts and other cost control measures to improve the Company's operating results and cash flows. In addition, the Company is in process of reviving 'the Channel' along with modernizing equipments, recruitment of senior staff, arrangements with various television channel distributors so that the channel could be seen on the maximum possible networks and the viewer ship could be increased. Accordingly, the Company's financial statements have been prepared on a going concern basis whereby the realization of assets and discharge of liabilities are expected to occur in the normal course of business.

1.02 Use of Estimates

The preparation of financial statements in conformity with Accounting Standards requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure relating to contingent liability at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

1.03 Revenue Recognition

Advertisement revenue (net of agency commission) is recognized on accrual basis when respective advertisement or commercial appears on the channel/website/mobile app or as per the terms with advertising agencies.

In respect of interest income, it is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.04 Fixed Assets

Tangible Assets:

Tangible assets are stated at acquisition cost, net of accumulated depreciation and accumulated impairment losses. Subsequent expenditures related to an item of fixed assets are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Losses arising from the retirement of and gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.

Intangible Assets:

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any, Intangible assets are amortised on a straight line basis over their estimated useful lives.

Gains or losses arising from the retirement or disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and Loss.

1.05 Depreciation

Depreciation is provided on a Straight Line Method over the estimated useful life of assets. Effective 1st April, 2014, the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.

Cost of Channel Development capitalised is amortised over a period of ten years.

Cost of Media Assets capitalised is amortised over a period of ten years.

Cost of Decoders are fully amortised in the year acquisition itself.

Cost of Software capitalized is amortised over a period of three years.

1.06 Impairment of Asset

The carrying amounts of assets are reviewed of each Balance Sheet date if there is any indication of impairment based on internal/external factors. An Asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reserved if there has been change in the estimate of the recoverable amount.

1.07 Lease

Lease payments are charged to Statement of Profit and Loss Account over the time period of the lease or other systematic basis more representative of the time pattern of the user's benefit.

1.08 Foreign Currency Transaction

i. Initial Recognition

Foreign Currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii. Conversion

Foreign Currency monetary items are reported using exchange rate prevailing as on 31st March or last working date near to the year end date. Non-monetary items,which are carried in items of historical cost denominated in a foreign currency, are reported using exchange rate at the date of the transaction.

iii. Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting company's monetary items at rates different from those at which they were initially recorded during the year or reported in the previous financial statement are recognized as income or expenses in the year in which they arise.

1.09 Investments

Long term investments are stated at cost.

1.10 Employee Benefits

Post Employment Benefits Plan:

Payment to defined contribution of retirement benefit schemes is charged to Statement of Profit and Loss when contributions to respective funds are due.

For Defined benefit schemes, such as leave encashment and gratuity, it is provided on the basis of actuarial valuation taken at the end of each year. Other short - term employee benefits are charged to Statement of Profit and Loss on accrual basis.

1.11 Borrowing Cost

Borrowing costs directly attributable to development of qualifying asset are capitalised till the date qualifying asset is ready for put to use for its intended purpose as part of cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

1.12 Taxes on Income

Tax expense comprises both current and deferred taxes. Current tax provision as per Income tax Act,1961,is made based on the tax liability computed after considering tax allowances and exemptions at the balance sheet date.

Deferred income taxes reflect the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent that, there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each balance sheet date and written down or written up,to reflect the amount that is reasonably/virtually certain,as the case may be, to be realized.

1.13 Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.14 Provisions Contingent Liabilities and Contingent Assets

Provisions:

A provision is recognized when the company has a present obligation as a result of past event; it is probable that an outflow of resources 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 onbest 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.

Contingent Liabilities:

Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets:

Contingent Assets are neither recognized nor disclosed in the Financial Statements.


Mar 31, 2014

1.01 Basis for preparation of Financial Statements

The financial statements have been prepared under the historical cost convention ignoring, if any, purchasing power of money and on accounting principles of "going concern". All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

The Company''s operating results continue to be materially affected by various factors such as increasing carriage cost, human resource cost etc. The Company has continuously implemented various measures such as improving operational efficiencies, renegotiation of contracts and other cost control measures to improve the Company''s operating results and cash flows. In addition, the Company is in process of reviving ''the channel'' along with modernising equipments, recruitment of senior staff, arrangements with various television channel distributors so that the channel could be seen on the maximum possible networks and the viewership could be increased. Accordingly, the Company''s financial statements have been prepared on a going concern basis whereby the realization of assets and discharge of liabilities are expected to occur in the normal course of business.

1.02 Use of Estimates

The preparation of financial statements in conformity with Accounting Standards requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure relating to contingent liability at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

1.03 Revenue Recognition

Advertisement revenue (net of agency commission) is recognised on accrual basis when respective advertisement or commercial appears on the channel or as per the terms with advertising agencies.

In respect of interest income, it is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.04 Fixed Assets

Tangible fixed Assets are stated at cost of acquisition which includes incidental expenses incurred for bringing the assets to the working condition for their intended use.

1.05 Depreciation

Depreciation has been provided on straight line method on pro rata basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

Channel development cost is amortized over a period often years on time proportionate basis.

Depreciation on media assets has been provided @10% on Straight Line Method.

Depreciation on decoders is provided @ 100%.

Software purchase is amortized @ 100%.

1.06 Foreign Currency Transaction

i. Initial Recognition

Foreign Currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii. Conversion

Foreign Currency monetary items are reported using exchange rate prevailing as on 31 st March or last working date near to the year end date. Non-monetary items, which are carried in items of historical cost denominated in a foreign currency are reported using exchange rate at the date of the transaction.

iii. Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in the previous financial statement are recognized as income or expenses in the year in which they arise.

1.07 Investments

Long term investments are stated at cost.

1.08 Employee Benefits

Post Employment Benefits Plan Payments to defined contribution of retirement benefit schemes is charged to profit & loss account when contributions to respective funds are due.

For Defined benefit schemes, such as leave encashment and gratuity, it is provided on the basis of actuarial valuation taken at the end of each year.

Other short-term employee benefits are charged to profit & loss account on accrual basis.

1.09 Borrowing Cost

Borrowing costs directly attributable to development of qualifying asset are capitalised till the date qualifying asset is ready for put to use for its intended purpose as part of cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

1.10 Taxes on I ncome

Tax expense comprises both current and deferred taxes. Current tax provision as per Income tax Act, 1961, is made based on the tax liability computed after considering tax allowances and exemptions at the balance sheet date.

Deferred income taxes reflect the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent that, there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each balance sheet date and written down or written up, to reflect the amount that is reasonably/virtually certain, as the case may be, to be realised.

1.11 Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.12 Provisions

A provision is recognised when the company has a present obligation as a result of past event; it is probable that an outflow of resources 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.


Mar 31, 2013

1.01 Basis for preparation of Financial Statements

The financial statements have been prepared under the historical cost convention ignoring changes, if any, purchasing power of money and on accounting principles of "going concern". All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

1.02 Use of Estimates

The preparation of financial statements in conformity with Accounting Standards requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure relating to contingent liability at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

1.03 Revenue Recognition

Advertisement revenue (Net of agency commission) is recognised on accrual basis when respective advertisement or commercial appears on the channel or as per the terms with advertising agencies.

In respect of Interest Income, it is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.04 Fixed Assets

Tangible fixed Assets are stated at cost of acquisition which includes incidental expenses incurred for bringing the assets to the working condition for their intended use.

1.05 Depreciation

Depreciation has been provided on straight line method on pro rata basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

Channel Development cost is amortized over a period of ten years on time proportionate basis.

Depreciation on Media Assets has been provided @10% on Straight Line Method.

Depreciation on Decoders is provided @ 100%.

Software Purchase has been amortized @ 100%.

1.06 Foreign Currency Transaction i. Initial Recognition

Foreign Currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii. Conversion

Foreign Currency monetary items are reported using exchange rate as on 31st March. Non-monetary items, which are carried in items of historical cost denominated in a foreign currency are reported using exchange rate at the date of the transaction.

iii. Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in the previous financial statement are recognized as income or expenses in the year in which they arise.

1.07 Investments

Long term investments are stated at cost.

1.08 Employee Benefits

Post Employment Benefits Plan

Payments to defined contribution of retirement benefit schemes is charged to profit & loss account when contributions to respective funds are due.

For Defined benefit schemes, such as leave encashment and gratuity, it is provided on the basis of actuarial valuation taken at the end of each year.

Other short -term employee benefits are charged to profit & loss account on accrual basis.

1.09 Borrowing Cost

Borrowing costs directly attributable to development of qualifying asset are capitalised till the date qualifying asset is ready for put to use for its intended purpose as part of cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

1.10 Taxes On Income

Tax expense comprises both current and deferred taxes. Current tax provision as per Income tax Act, 1961, is made based on the tax liability computed after considering tax allowances and exemptions at the balance sheet date.

Deferred income taxes reflect the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent that, there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits .

The carrying amount of deferred tax assets are reviewed at each balance sheet date and written down or written up, to reflect the amount that is reasonably/ virtually certain, as the case may be, to be realised.

1.11 Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.12 Provisions

A provision is recognised when the company has a present obligation as a result of past event; it is probable that an outflow of resources 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.


Mar 31, 2012

1.01 Basis for preparation of Financial Statements

The financial statements have been prepared under the historical cost convention ignoring changes, if any, purchasing power of money and on accounting principles of "going concern". All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

1.02 Use of Estimates

The preparation of financial statements in conformity with Accounting Standards requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure relating to contingent liability at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

1.03 Revenue Recognition

Advertisement revenue (Net of agency commission) is recognised on accrual basis when respective advertisement or commercial appears on the channel or as per the terms with advertising agencies.

In respect of Interest Income, it is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.04 Fixed Assets

Tangible fixed Assets are stated at cost of acquisition which includes incidental expenses incurred for bringing the assets to the working condition for their intended use.

1.05 Depreciation

Depreciation has been provided on straight line method on pro rata basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Channel Development cost is amortized over a period of ten years on time proportionate basis.

Depreciation on Building is provided on straight line method on Pro rata basis considering useful life of 50 years and 5% residual value.

Depreciation on Media Assets has been provided @10% on Straight Line Method. Depreciation on Decoders is provided @ 100%.

Software Purchase has been amortized @ 100%.

1.06 Foreign Currency Transaction

i. Initial Recognition

Foreign Currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii. Conversion

Foreign Currency monetary items are reported using exchange rate as on 31st March. Non-monetary items, which are carried in items of historical cost denominated in a foreign currency are reported using exchange rate at the date of the transaction.

iii. Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting company's monetary items at rates different from those at which they were initially recorded during the year, or reported in the previous financial statement are recognized as income or expenses in the year in which they arise.

1.07 Investments

Long term investments are stated at cost.

1.08 Employee Benefits

Post Employment Benefits Plan

Payments to defined contribution of retirement benefit schemes is charged to profit & loss account when contributions to respective funds are due. For Defined benefit schemes, such as leave encashment and gratuity, it is provided on the basis of actuarial v. valuation taken at the end of each year.

Other short-term employee benefits are charged to profit & loss account on accrual basis.

1.09 Borrowing Cost

Borrowing costs directly attributable to development of qualifying asset are capitalised till the date qualifying asset is ready for put to use for its intended purpose as part of cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

1.10 Taxes On Income

Tax expense comprises both current and deferred taxes. Current tax provision as per Income Tax Act, 1961, is made based on the tax liability computed after considering tax allowances and exemptions at the balance sheet date.

Deferred income taxes reflect the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent that, there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each balance sheet date and written down or written up, to reflect the amount that is reasonably/virtually certain, as the case may be, to be realised.

1.11 Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.12 Provisions

A provision is recognised when the company has a present obligation as a result of past event; it is probable that an outflow of resources 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.


Mar 31, 2011

1. Basis for preparation of Financial Statements

The financial statements have been prepared under the historical cost convention ignoring changes, if any, purchasing power of money and on accounting principles of "going concern". All income and expenditure havinga material bearing on the financial statements are recognised on accrual basis.

2. Use of Estimates

The preparation of financial statements in conformity with Accounting Standards requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure relating to contingent liability at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

3. Revenue Recognition

Advertisement revenue (Net of agency commission) is recognised on accrual basis when respective advertisement or commercial appears on the channel or as per the terms with advertising agencies.

In respect of Interest Income, it is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

In case of Barter transaction the income is recognized at fair value of Goods/Services received.

4. Fixed Assets

Tangible fixed Assets are stated at cost of acquisition which includes incidental expenses incurred for bringing the assets to the working condition for their intended use.

5. Depreciation

Depreciation has been provided on straight line method on pro rata basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Channel Development cost is amortized over a period often years on time proportionate basis.

Depreciation on Building is provided on straight line method on Pro rata basis considering useful life of 50 years and 5% residual value.

Depreciation on Media Assets has been provided @10% on Straight Line Method.

Depreciation on Decoders is provided @ 100%.

Software Purchase has been amortized @ 100%.

6. Foreign Currency Transaction

i. Initial Recognition

Foreign Currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii.Conversion

Foreign Currency monetary items are reported using exchange rate as on 31st March. Non-monetary items, which are carried in items of historical cost denominated in a foreign currency are reported using exchange rate at the date of the transaction.

iii. Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting company's monetary items at rates different from those at which they were initially recorded during the year, or reported in the previous financial statement are recognized as income or expenses in the year in which they arise.

7. Investments

Long term investments are stated at cost.

8. Employee Benefits Post Employment Benefits Plan

Payments to defined contribution of retirement benefit schemes is charged to profit & loss account when contributions to respective funds are due.

For Defined benefit schemes, such as leave encashment and gratuity, it is provided on the basis of actuarial valuation taken at the end of each year.

Other short -term employee benefits are charged to profit & loss account on accrual basis.

9. Borrowing Cost

Borrowing costs directly attributable to development of qualifying asset are capitalised till the date qualifying asset is ready for put to use for its intended purpose as part of cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

10. Taxes On Income

Tax expense comprises both current and deferred taxes. Current tax provision as per Income tax Act, 1961, is made based on the tax liability computed after considering tax allowances and exemptions at the balance sheet date.

Deferred income taxes reflect the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent that, there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each balance sheet date and written down or written up, to reflect the amount that is reasonably/virtually certain, as the case may be, to be realised. (Refer note 8 to Notes to Accounts)

11. Earning Per Share (EPS)

Basic earnings per share are calculated by

dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

12. Provisions

A provision is recognised when the company has a present obligation as a result of past event; it is probable that an outflow of resources 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.

 
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