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Notes to Accounts of Cineline India Ltd.

Mar 31, 2015

1. Background of the Company

Cineline India Limited was incorporated on 22 May 2002. The Company is into the business of renting out premises owned by the Company and operating windmill.

2. Basis of preparation of financial statements

The financial statements which have been prepared under historical cost convention on the accrual basis of accounting, are in accordance with the applicable requirements of the Companies Act, 2013 (the "Act") and comply in all material aspects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended).

3. Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities, revenue and expenses and disclosure of contingent liabilities. The estimates and assumptions used in accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

4. Rights and restrictions attached to equity shareholders

The Company has only one class of equity share having face value of Rs. 5 each. Every holder of equity share is entitled to one vote per equity share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company.

5. Rights and restrictions attached to preference shareholders:-

The Company has only one class of preference share having face value of Rs.10 each. Every holder of preference share is entitled to one vote per preference share.

6. Disclosures pursuant to Accounting Standard 15 "Employee Benefits"

I. The Company has a defined benefit gratuity plan. Every employee gets a gratuity on leaving the Company after the completion of five years, at fifteen days of last drawn salary for each completed year of service.

ii. The Company has a defined benefit compensated absences plan. It is payable to all the eligible employees at the rate of daily salary subject to a maximum of forty two days.

7. Bank borrowings

A. Term loan taken from Axis bank is secured against:

(i) Personal guarantee of Mr. Rasesh B. Kanakia and Mr. Himanshu B. Kanakia.

(ii) Charge on the moveable fixed assets and current assets of the Company.

Primary charge

a) Hypothecation of receivables (pertaining to Nagpur mall, multiplexes leased to PVR Limited, advertisement revenue, car parking revenue and revenue from sale of power)

b) Escrow agreement to be executed by the Company with the bank and to be acknowledged by the tenants to route the cash flows through the designated account.

Collateral charge

a) Exclusive charge by way of mortgage of the following two properties:

* Commercial building "Eternity mall and multiplex" situated at plot no. 1, KH No. 312/2,313/1, Bearing Corporation House No. 22, C.S No. 1784/1, Ward No. 71, Mouje Sitabuldi, Talukaand District Nagpur."

* Commercial building "Cinemax" Multiplex, Eternity Mall, Teen Haat Naka, L.B.S. Marg, Thane (West) 400602.

B. The vehicle loan from Axis bank is secured against Maruti Suzuki SX4 for which the loan was taken.

8 Disclosure of related party transactions under Accounting Standard 18 "Related Party Disclosures"

In accordance with the disclosure requirements of Accounting Standard 18 "Related Party Disclosures" the details of related party transactions are given below:

i. List of related parties:

Name of the related party Relationship

Mr. Rasesh B. Kanakia Director

Mr. Himanshu B. Kanakia Director

Mr. Jatin Shah Key management personnel

Mrs. Manisha Vora Relative of director

Kanakia Spaces Private Limited Entities under common control or significant influence can be exercised

Centaur Mercantile Private Limited Entities under common control or significant influence can be exercised

RBK Education Solutions Private Limited Entities under common control or significant influence can be exercised

9. Primary segment information

The Company is organised into two business segments viz. Retail space division comprising of construction of malls for sale and or lease to third parties and Windmill division comprising of wind energy generator.

Secondary segment information

The Company does not have geographical distribution of revenue hence the secondary segmental reporting based on geographical location of its customers is not applicable to the Company.

10. Based on the available information with the management, the Company does not owe any sum to a micro, small or medium enterprise as defined in Micro, Small and Medium Enterprises Development Act, 2006.

11. Balances of certain trade receivables, advances and trade payables are subject to confirmation / reconciliation and subsequent adjustment, if any. In the opinion of the management such adjustment are not likely to be material.

12. Previous year comparatives

Figures for the previous year have been regrouped wherever considered necessary to confirm with the current year's presentation.


Mar 31, 2014

1 (a). Rights and restrictions attached to equity shareholders

The Company has only one class of equity share having face value of Rs. 5 each. Every holder of equity share is entitled to one vote per equity share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company.

1 (b). Rights and restrictions attached to preference shareholders:-

The Company has only one class of preference share having face value of Rs.10 each. Every holder of preference share is entitled to one vote per preference share.

2. Disclosures pursuant to Accounting Standard 15 "Employee Benefits"

I. The Company has a defined benefit gratuity plan. Every employee gets a gratuity on leaving the Company after the completion of five years, at fifteen days of last drawn salary for each completed year of service.

The following table set out the status of the gratuity plan as required under Accounting Standard 15 "Employee Benefits" and the reconciliation of opening and closing balances of the present value of the defined benefit obligation.

3. Segment reporting:

Primary segment information

The Company is organised into two-business segments viz. Retail space division comprising of construction of malls for sale and or lease to third parties and Windmill division comprising of wind energy generator.

4. Earnings per share (EPS)

The basic earnings per equity share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive. The earnings per share is calculated as under:

5. Bank Borrowings:

A. Term Loans taken from Axis Bank are secured against:

i. Personal guarantee of Mr. Rasesh Kanakia and Mr. Himanshu Kanakia.

ii. Charge on the moveable fixed assets and current assets of the Company.

Primary charge

a) Hypothecation of receivables (pertaining to Nagpur mall, multiplexes leased to Cinemax India Limited, advertisement revenue, car parking revenue and revenue from sale of power).

b) Escrow agreement to be executed by the Company with the bank and to be acknowledged by the tenants to route the cash flows through the designated account.

Collateral charge

a) Exclusive charge by way of mortgage of the following two properties:

Commercial building "Eternity mall and Multiplex" situated at plot no. 1, KH No. 312/2,313/1, Bearing Corporation House No. 22, C.S No. 1784/1, Ward No. 71, MoujeSitabuldi, Taluka and District Nagpur

Commercial building "Cinemax" Multiplex, Eternity Mall, Teen Haat Naka, L.B.S. Marg, Thane (West) 400602.

B. The car loan from Axis bank is secured against Maruti Suzuki SX4 for which the loan was taken.

6. Based on the available information with the management, the Company does not owe any sum to a micro, small or medium enterprise as defined in Micro, Small and Medium Enterprises Development Act, 2006.

7. Extraordinary item pertain to the expenses incurred towards carrying out the process of demerging the Companys'' theatre exhibition business into a separate entity viz. Cinemax India Limited.

8. The current assets, loans and advances are stated at the value, which in the opinion of the board, are realisable in the ordinary course of the business. Current liabilities and provisions are stated at the value payable in the ordinary course of the business.

9. Balances of certain trade receivables, advances and trade payables are subject to confirmation/reconciliation andsubsequent adjustment, if any. In the opinion of the management such adjustment are not likely to be material.

10. Previous year comparatives

Figures for the previous year have been regrouped wherever considered necessary to confirm with the current years'' presentation.


Mar 31, 2013

1. Segment reporting:

Primary segment information:

Till the previous year, the Company was organised into three-business segments viz. Theatre Exhibition division comprising of multiplex theatres and other entertainment facilities, Retail space division comprising of construction of malls for sale and or lease to third parties and Windmill division comprising of wind energy generator.

However, Theatre Exhibition business of the Company has been demerged with effect from 1 April 2012 to a separate entity viz. Cinemax Exhibition India Limited (presently known as Cinemax India Limited) in the manner provided for in the scheme sanctioned by the Honorable High Court of Judicature at Bombay vide its order dated 9 March 2012.

2. Earnings/(Losses) per Share (EPS):

The basic Earnings/ (Losses) per equity share is computed by dividing the net profit/(loss) attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year. The number of shares used in computing diluted Earnings/(Losses) per share comprises the weighted average number of shares considered for deriving basic Earnings/(Losses) per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive. The Earnings/(Losses) per share is calculated as under:

3. Bank Borrowings:

A. Term Loanstaken from Axis Bank are secured against:

i. Personal Guarantee of Mr. Rasesh Kanakia and Mr. Himanshu Kanakia.

ii. Charge on the moveable fixed assets and current assets of the Company.

a) Exclusive charge by way of mortgage of the following three properties as under:

b) Commercial Building "Eternity Mall and Multiplex" situated at plot no. 1, KH No. 312/2,313/1, Bearing Corporation House No. 22, C.S No. 1784/1, Ward No. 71, MoujeSitabuldi, Talukaand District Nagpur.

c) Commercial Building "Cinemax" Multiplex, Eternity Mall, Teen Haat Naka, L.B.S. Marg, Thane (West) 400602.

d) Commercial Building "Cinemax" Multiplex, Wonder Mall, Kapurbawadi Junction, Ghodbunder Road, Thane (West) 400601.

iii. Debt Service Reserve Account (DSRA) equivalent to one month interest repayment to be maintained under lien with AxisBank.

B. Term Loan taken from Aditya Birla Finance Limited which is secured against:

i. Exclusive Charge and hypothecation of present and future lease rental receivables from the property situated at

Ground floor Unit B1-004 & B1-005 of Boomerang Building, situated at Village Sakinaka Chandivali, Andheri East. Mumbai -53.

ii First & Exclusive charge with mortgage of Units B1-004 & B1-005 of Boomerang Building, situated at Village SakinakaChandivali, Andheri East, Mumbai -53

4. Contingent liability pertaining to service tax on rental of immovable properties amount to Rs. Nil (Previous Year Rs. 365.92lacs).

5. Capital Commitments:

Estimated value of contracts remaining to be executed on capital account and not provided for, net of advances aggregated to Rs. Nil (Previous Year Rs. 269.45 lacs).

6. CIF value of imports in respect of capital goods purchased during the year aggregated to Rs. Nil (Previous Year Rs. 35.72lacs).

7. Expenditure in foreign currency in relation to foreign traveling and marketing aggregated to Rs. Nil(Previous Year Rs. 1.15lacs).

8. Based on the available information with the management, the Company does not owe any sum to a micro, small or medium enterprise as defined in Micro, Small and Medium Enterprises Development Act, 2006.

9. Extraordinary item pertain to the expenses incurred towards carrying out the process of demerging the Company''s Theatre Exhibition Business into a separate entity viz. Cinemax India Limited.

10. The Current Assets, Loans and Advances are stated at the value, which in the opinion of the Board, are realisable in the ordinary course of the business. Current liabilities and provisions are stated at the value payable in the ordinary course of the business.

11. Balances of certain debtors, advances and creditors are subject to confirmation/reconciliation and subsequent adjustment, if any. In the opinion of the management such adjustment are not likely to be material.

12. The Honorable High Court of Judicature at Bombay vide its order dated 9th March 2012 has sanctioned the Scheme of demerger i.e. Composite Scheme of Arrangement between the CinelineIndia Limited Formerly known as Cinemax Properties Limited) and Cinemax India Limited (Formerly known as Cinemax Exhibition India Limited) and their respective Shareholders and Creditors under Sections 391 to 394 read with Sections 78, 100 to 103 of the Companies Act, 1956. 1st April 2012 and 20th April 2012 are the appointed date and effective date, respectively of the scheme. Accordingly, the Honorable High Court has inter alia sanctioned the following:

a) Demerger of Exhibition of Films business:

The Scheme envisages the demerger of Theatre Exhibition business of Cineline India Limited (Formerly known as Cinemax Properties Limited) into separate entity viz., Cinemax India Limited (Formerly known as Cinemax Exhibition India Limited) on a going concern basis in the manner provided for in the scheme.

b) Issue and Allotment of Shares of Cinemax India Limited (CIL) in the ratio of 1:1.

Each individual shareholder of Cineline India Limited (Formerly known as Cinemax Properties Limited) {including their respective heirs, executors, administrators or other legal representatives or the successors - in - title}whose name shall appear in the Register of Members of CPL as on the Demerger Record Date i.e.18 May 2012 shall be issued and allotted shares of CIL in the following manner:

1 (One) fully paid Equity Share of Rs. 5 (Rupees Five) each of CIL shall be issued and allotted for every 1 (One) fully paid Equity Share of Rs. 10 (Rupees Ten) each held in CPL "

c) Name change of the Company:

Pursuant to Scheme of arrangement name of "Cinemax India Limited" changed to "Cinemax Properties Limited" with effect from 9th May 2012 and further changed to "Cineline India Limited" w.e.f. 26th March 2013.

13. Previous year comparatives:

Figures for the previous year have been regrouped wherever considered necessary to confirm with the current year''s presentation.

The Theatre Exhibition Business of Cineline India Limited (Formerly known as Cinemax Properties Limited) has been demerged with effect from 1st April 2012 to a separate entity viz. Cinemax Exhibition India Limited (presently known as Cinemax India Limited) in the manner provided for in the scheme sanctioned by the Honorable High Court of Judicature at Bombay vide its order dated 9th March 2012. Hence the figures for the previous year cannot be effectively compared with the figures for the year ended 31st March 2013.


Mar 31, 2012

1. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the applicable Accounting Standards and Accounting Rules as notified by Central Government under the Companies Act, 1956, to the extent applicable.

2. Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities, revenue and expenses and disclosure of contingent liabilities. The estimates and assumptions used in accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.

3. Disclosures pursuant to Accounting Standard 15 (AS -15) "Employee Benefits

The Company has a defined benefit gratuity plan. Every employee gets a gratuity on leaving the Company after the completion of five years, at fifteen days of last drawn salary for each completed year of service.

Secondary segment information:

The Company does not have geographical distribution of revenue hence the secondary segmental reporting based on geographical location of its customers is not applicable to the Company.

4. Earnings/(Losses) per Share (EPS):

The basic earnings/(losses) per equity share is computed by dividing the net profit/(loss) attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings/(losses) per share comprises the weighted average number of shares considered for deriving basic earnings/(losses) per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive. The Earnings/(Losses) per share is calculated as under:

5. Bank Borrowings:

1. Term Loans, Working Capital Loans and Non Fund Based Credit Facilities taken from Axis Bank are secured against:

i. Personal Guarantee of Mr. Rasesh B. Kanakia and Mr. Himanshu B. Kanakia

ii. Charge on the moveable fixed assets and current assets of the Company and its three wholly owned subsidiaries viz. Vista Entertainment Private Limited, Nikmo Entertainment Private Limited and Odean Shrine Multiplex Private Limited.

iii. Exclusive charge by way of mortgage of the following three properties as under:

a) Commercial Building "Eternity Mall and Multiplex" situated at plot no. 1, KH No. 312/2,313/1, Bearing Corporation House No. 22, C.S No. 1784/1, Ward No. 71, Mouje Sitabuldi, Taluka and District Nagpur.

b) Commercial Building "Cinemax" Multiplex, Eternity Mall, Teen Haat Naka, L.B.S. Marg, Thane (West) 400602.

c) Commercial Building "Cinemax" Multiplex, Wonder Mall, Kapurbawadi Junction, Ghodbunder Road, Thane (West) 400601.

iv. Debt Service Reserve Account (DSRA) equivalent to one month interest repayment to be maintained under lien with Axis Bank.

v. Corporate guarantee of the three wholly owned operating subsidiaries viz. Vista Entertainment Private Limited, Nikmo Entertainment Private Limited and Odeon Shrine Multiplex Private Limited.

vi. Goods procured under Letter of Credit.

2. Vehicle loans taken from various banks are secured against the vehicles taken on hire purchase and the personal guarantees of the directors.

6. Contingent liability pertaining to service tax on rental of immovable properties amounts to Rs. 365.92 lacs (Previous year Rs. 377.19 lacs)

7. Capital Commitments:

Estimated value of contracts remaining to be executed on capital account and not provided for, net of advances, aggregated to Rs. 269.45 lacs (Previous year Rs. 1,086.00 lacs).

8. CIF value of import in respect of capital goods purchased during the year aggregated to Rs. 35.72 lacs (Previous year Rs. 139.36 lacs).

9. Expenditure in foreign currency in relation to foreign traveling and marketing aggregated to Rs. 1.15 lacs (Previous year Rs. 3.81 lacs).

10. Based on the available information with the management, the Company does not owe any sum to a micro, small or medium enterprise as defined in Micro, Small and Medium Enterprises Development Act, 2006.

11. The exceptional items includes

(I) Rs. 202.93 lacs towards prepayment charges on account of shifting of banking facilities to avail better terms.

(ii) The Company has made provision of Rs. 365.92 lacs pertaining to service tax on Renting of Immoveable property in accordance with the Supereme Court Order dated 14 October 2011.

12. The Current Assets, Loans and Advances are stated at the value, which in the opinion of the Board, are realizable in the ordinary course of the business. Current liabilities and provisions are stated at the value payable in the ordinary course of the business.

13. Balances of certain debtors, advances and creditors are subject to confirmation/reconciliation and subsequent adjustment, if any. In the opinion of the management such adjustment are not likely to be material.

14. Events occurring after Balance Sheet date:

The Hon'ble High Court of Judicature at Bombay vide its order dated 9 March 2012 has sanctioned the Scheme of demerger i.e. Composite Scheme of Arrangement between the Cinemax Properties Limited (formerly known as Cinemax India Limited) and Cinemax Exhibition India Limited (CEIL) and their respective Shareholders and Creditors under Sections 391 to 394 read with Sections 78,100 to 103 of the Companies Act, 1956.1 April 2012 and 20 April 2012 are the appointed date and effective date, respectively of the scheme. Accordingly, the Hon'ble High Court has inter alia sanctioned the following:

a) Demerger of Exhibition of Films business:

The Scheme envisages the demerger of Theatre Exhibition business of Cinemax Properties Limited (formerly known as Cinemax India Limited) into separate entity viz., Cinemax Exhibition India Limited on a going concern basis in the manner provided for in the scheme.

b) Issue and Allotment of Shares of Cinemax Exhibition India Limited (CEIL) in the ratio of 1:1.

Each individual shareholder of Cinemax India Limited (CIL) {including their respective heirs, executors, administrators or other legal representatives or the successors in title whose name shall appear in the Register of Members of CIL as on the Demerger Record Date i.e. 18 May 2012 shall be issued and allotted shares of CEIL in the following manner:

1 (One) fully paid Equity Share of Rs. 5 (Rupees Five) each of CEIL shall be issued and allotted for every 1 (One) fully paid Equity Share ofRs. 10 (Rupees Ten) each held in CIL.

c) Reduction of the existing equity share capital of CEIL.

Subsequent to allotment as prescribed in Note 14 (b) above, the existing 100,000 equity shares ofRs. 5 (Rupees Five) each of the Company will be cancelled. This reduction would not involve either a diminution of liability in respect of unpaid share capital or payment of paid-up share capital and the provisions of Section 101 of the Companies Act, 1956.

d) Name change of the Company:

Pursuant to Scheme of arrangement name of "Cinemax India Limited" changed to "Cinemax Properties Limited" with effect from 9 May 2012.

15. Previous year comparatives:

Till the year end 31 March 2011, the Company was using pre-revised schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised schedule VI, notified under the Companies Act, 1956, has become applicable to the Company. The Company has accordingly reclassified previous year figures to confirm to this year classification.


Mar 31, 2011

1. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the applicable Accounting Standards and Accounting Rules as notified by Central Government under the Companies Act, 1956, to the extent applicable.

2. Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities, revenue and expenses and disclosure of contingent liabilities. The estimates and assumptions used in accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

a) Disclosures pursuant to Accounting Standard 15 (AS-15) "Employee Benefits"

i. The Company has a defined benefit gratuity plan. Every employee gets a gratuity on leaving the Company after the completion of five years, at fifteen days of last drawn salary for each completed year of service.

ii. The Company has a defined plan for compensated absences for its employees.

b) Segment reporting AS-17:

Primary segment information:

The Company is organized into three-business segments viz. Theatre Exhibition division comprising of multiplex theatres and other entertainment facilities, Retail space division comprising of construction of malls for sale and or lease to third parties and Windmill division comprising of wind energy generator.

Secondary segment information:

The Company does not have geographical distribution of revenue hence the secondary segmental reporting based on geographical location of its customers is not applicable to the Company.

c) Disclosure of Related Party transactions under AS-18:

In accordance with the disclosure requirements of Accounting Standard (AS)-18 "Related party Disclosures" the details of related party transactions are given below:

i. List of related parties:

Nature of relationship Name of related parties

Companies where control exists

Subsidiaries

1. Vista Entertainment Private Limited

2. Growel Entertainment Private Limited

3. Cinemax Motion Pictures Limited

4. Odeon Shrine Multiplex Private Limited

Ultimate Subsidiary

1. Nikmo Entertainment Private Limited (formerly known as Nikmo Finance Private Limited)

Directors and Key Management Personnel 1. Mr. Rasesh B. Kanakia

2. Mr. Himanshu B. Kanakia

3. Mrs. Hiral H. Kanakia (upto 10 September 2009)

Relatives of Directors and Key Management Personnel

1. Mrs. Rupal Kanakia

2. Mrs.ManishaVora

3. Mrs. Hiral H. Kanakia (from 11 September 2009)

Entities under common control or significant influence can be exercised

1. Kanakia Spaces Private Limited

2. Kanakia Finance And Investments Private Limited

3. R And H Amusements And Games Private Limited

4. Cine Cafe Services.

5. Kanakia Hospitality Private Limited

Beneficial Trust 1. Babubhai Kanakia Foundation

g) Bank Loans:

1 Term loans and Cash Credit taken from Jammu and Kashmir Bank are secured against:

i. Personal guarantees of Directors.

ii. Hypothecation of all movable fixed assets including furniture and fixtures, machinery / equipment, fittings etc. to be in upcoming projects at eight locations.

iii. Assignment of cash flows from eight new multiplexes.

iv. Hypothecation of the Equipments, furniture and other moveable's assets at installed in new nine locations.

v. Assignment of cash flows from new multiplexes proposed to be established at nine locations.

vi. Assignment of all receivables and dues from Hindustan Coca Cola Beverage Private Limited.

vii. Hypothecation of equipments, furniture and other moveable assets to be installed at three new multiplexes.

viii. First Charge of present &future cash flows of all the three multiplexes.

ix. Registered Mortgage of four multiplex.

x. Hypothecation of equipments, furniture and other moveable assets to be installed at four new multiplexes.

xi. First Charge of present &future cash flows of all the four multiplexes.

2 Term Loans from State Bank of India are secured against:

i. Land and construction at a mall being principal securities and against a theatre, being collateral security.

ii. Hypothecation charge on fit-outs financed by the Bank at twelve Cinema Halls and Multiplexes.

iii. Equatable mortgage of one mall & multiplex.

3 Term Loan and Cash Credit / Working Capital Demand Loan taken from Standard Chartered Bank are secured against:

i. Exclusive charge on a Windmill purchased of Standard Chartered Bank Term Loan.

ii. Exclusive charge on a Windmill proposed to be purchased of Standard Chartered Bank Term Loan.

iii. Exclusive charge on the receivables of two multiplexes.

iv. Personal guarantees of Directors.

v. Exclusive charge on one commercial property owned by the company.

4 Term Loans from Saraswat Bank are secured against:

i. Registered Mortgage of a property belonging to the company.

ii. Hypothecation of furniture and fixtures installed at four locations.

iii. Hypothecation of projections and screening equipments installed at four locations.

iv. Hypothecation of electrical and airconditioners installed at four locations.

v. Registered Mortgage of a theatre as collateral security.

vi. Personal guarantees of Directors

5 Term Loan from Tata Capital is secured against:

i. Hypothecation of equipments installed at four locations.

ii. Personal guarantee of Directors.

6. Cash Credit from HDFC Bank is secured against:

i. Assignment of cash accruals of three locations. ii. Personal Guarantee of directors.

7. Vehicle loans taken from various banks are secured against the vehicles taken on Hire purchase and the personal guarantees of the directors.

8. Term Loan (Corporate Loan) from Kotak Mahindra Bank is secured against:

i. Charged on entire credit card receivables of the company.

ii. Mortgage of one multiplex as a collateral security.

h) Contingent liability pertaining to service tax on rental of immovable properties amounts to Rs. 377.19 lacs (Previous year Rs. 188.19 lacs)

i) Capital Commitments:

Estimated value of contracts remaining to be executed on capital account and not provided for, net of advances, aggregated to Rs. 1,086.00 lacs (Previous year Rs. 146.06 lacs).

j) CIF value of import in respect of capital goods purchased during the year aggregated to Rs. 139.36 lacs (Previous year Rs. 38.23 lacs).

k) Expenditure in foreign currency in relation to foreign traveling and marketing aggregated to Rs. 3.81 lacs (Previous year Rs. 6.75 lacs).

m) Bank guarantees amounting to Rs. Nil (Previous year Rs. 328.74 lacs).

p) Based on the available information with the management, the Company does not owe any sum to a small scale Industrial undertaking as defined in clause (j) to section 3 of the Industries (Development and Regulation) Act, 1951.

r) The current assets, loans and advances are stated at the value, which in the opinion of the Board, are realisable in the ordinary course of the business. Current liabilities and provisions are stated at the value payable in the ordinary course of the business.

s) Balances of certain debtors, advances and creditors are subject to confirmation/reconciliation subsequent adjustment, if any. In the opinion of the management such adjustment are not likely to be material.

t) Previous year's figures have been regrouped, wherever considered necessary to confirm with the current year's presentation.


Mar 31, 2010

A) Disclosures pursuant to AS-15 (Revised) "Employee Benefits":

The Company has a defined benefit gratuity plan. Every employee gets a gratuity on leaving the Company after the completion of five years, at fifteen days of last drawn salary for each completed year of service.

b) Earnings perShare (EPS):

The basic earnings per equity share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive. The EPS is calculated as under:

c) Bank Loans:

1 Term loans and Cash Credit taken from Jammu and Kashmir Bank are secured against:

i. Personal guarantees of Directors.

ii. Hypothecation of all movable fixed assets including furniture and fixtures, machinery / equipment, fittings etc. to be in upcoming projects at eight locations.

iii. Assignment of cash flows from eight new multiplexes.

iv. Hypothecation of the Equipments, furniture and other movables assets at installed in new nine locations.

v. Assignment of cash flows from new multiplexes proposed to be established at nine locations.

vi. Assignment of all receivables and dues from Hindustan Coca Cola Beverage Private Limited.

vii. Hypothecation of equipments, furniture and other movable assets to be installed at three new multiplexes.

viii. First charge of present & future cash flows of all the three multiplexes.

ix. Registered mortgage of four multiplexes.

2 Cash credit from Bank of India is secured against the office premises belonging to Kanakia Spaces Private Limited, being collateral security.

3 Term Loans from State Bank of India are secured against:

i. Land and construction at a mall being principal securities and against a theatre, being collateral security.

ii. Hypothecation charge on fit-outs financed by the Bank at twelve Cinema halls & multiplexes.

iii. Registered mortgage on a Cinema hall, being a collateral security.

iv. Equitable mortgage of a multiplex theatre as collateral security.

4 Term Loan and Cash Credit / Working Capital Demand Loan taken from Standard Chartered Bank are secured against:

i. Exclusive charge on a Windmill purchased of Standard Chartered Bank Term Loan.

ii. Exclusive charge on a Windmill proposed to be purchased of Standard Chartered Bank Term Loan.

iii. Exclusive charge on the receivables of two multiplexes.

iv. Personal guarantees of Directors.

5 Term Loans from Saraswat Bank are secured against:

i. Registered mortgage of a property belonging to the company.

ii. Hypothecation of furniture and fixtures installed at four locations.

iii. Hypothecation of projections and screening equipments installed at four locations.

iv. Hypothecation of electrical and air conditioners installed at four locations.

v. Registered mortgage of a theatre as collateral security.

vi. Personal guarantees of Directors.

6 Term Loan from Tata Capital is secured against:

i. Hypothecation of equipments to be installed at four locations. ii. Personal guarantee of Directors.

7 Cash CreditfromHDFC Bank is secured against:

i. Assignment of cash accruals of three locations.

ii. Personal Guarantee of Directors.

8 Vehicle loans taken from various banks are secured against the vehicles taken on hire purchase and the personal guarantees of the Directors

h) Contingent liability pertaining to service tax on rental of immovable properties amounts to Rs. 188.19 lacs (Previous year Rs.Nil).

i) Capital Commitments:

Estimated value of contracts remaining to be executed on capital account and not provided for, net of advances, aggregated to Rs. 146.06 lacs (Previous year Rs. 640.30 lacs).

j) As the turnover of the Company includes sale of food and beverages, it is not possible to give quantitative details of the turnover and food and beverages consumed. The Company has been exempted from giving these particulars for the year vide Order No. F.No.46/128/2010-CL-lll dated 17 May 2010 issued by the Department of Company Affairs.

k.Exceptional items for the current year comprise of impairment loss on certain fixed assets due to forced closure for a multiples theatre and a food court.

l)GIF value of import in respect of capital goods purchased during the year aggregated to Rs.38.23 lacs (Previous year Rs. 267.83 lacs).

m)Expenditure in foreign currency in relation to foreign traveling and marketing aggregated to Rs.6.75 lacs (Previous year Rs.6.05 lacs).

n)The current assets,loans and advances are stated at the value,which in the opinion of the Board,are realisable in the ordinary course of the business.Current liabilities and provisions are stated at the value payable in the ordinary course of the business.

o)Previous years figures have been regrouped /rearranged,wherever considered necessary to conform with the current years presentation.

 
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