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Accounting Policies of Cinevista Ltd. Company

Mar 31, 2015

1.1 Basis of preparation of Financial statements:

This financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention under accrual basis and comply with mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013 ('the Act') read with rule 7 of the Companies (Accounts) Rules, 2014. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2 System of Accounting:

The company adopts the accrual concept in the preparation of the accounts in respect of revenue and expenses.

1.3 All the assets and liabilities have been classified as current or non-current as per the companies normal operating cycle and other criteria set on in the Revised Schedule VI of the companies Act, 1956. Based on the nature of goods and products and the time between the acquisition of assets and their realisation in cash and cash equivalents, the company has determined its operating cycle as twelve months for the purpose of current - non current classification of assets and liabilities.

1.4 Use of estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements, disclosure of contingent liabilities and reported amounts of revenue and expenditure for the year. Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known / materialize.

1.5 Fixed assets and Depreciation / amortisation:

a) Tangible Fixed Assets are stated at cost inclusive of attributed cost related to acquisition.

b) Depreciation on tangible fixed assets is provided at the rates specified in Part 'C' of schedule II of the companies Act,2013, based on their estimated useful life under written down value method on prorata basis from the month the assets are put to use during the financial year. In respect of assets sold or disposed off during the year, the depreciation / amortisation is provided till the month of sale or disposal of the assets.

c) Intangible assets acquired are measured on initial recognition at cost.

1.6 Investments :

Non-current Investments are stated at cost.

1.7 Inventories :

(a) U-Matic Cassettes :

Inventories of u-matic cassets are valued at "weighted average cost" as permissible under the Accounting Standard 2 (AS-2) "Valuation Of Inventories " issued by the Council of The Institute of Chartered Accountants of India.

(b) Work-in-progress :

Under production cost of serials, ad-films etc. are valued at "cost".

1.8 Contingent Liabilities :

Contingent liabilities in respect of show cause notices received from govt. authorities are considered only when they are converted into demands.

1.9 Foreign Currency Transactions

Foreign Currency transactions are accounted for at the exchange rates prevailing on the date of the transactions. Foreign Currency receivables and payables are valued at the closing price at the year end in accordance with the Accounting Standard 11 (AS 11) Foreign Currency Transactions issued by the Institute of Chartered Accountants of India. Gains and losses on settlement/translation of monetary assets and liabilities are recognized in the statement of profit and loss.

1.10 Revenue Recognition:

Realizations in respect of serials are shown at gross.

In respect of serials, income is recognised in the Statement of Profit and Loss as and when the relevant programme or the episode is telecast.

In respect of export of serials, income is recognised in the statement of Profit and Loss only when the relevant serials are delivered to and accepted by the buyers and all the significant risks and rewards of telecasting rights of programme have been transferred to the buyers.

In respect of Ad-Films, income is recognised when the completed commercial cassettes is delivered to the buyer.

In respect of released feature films income is recognised as and when the right to receive the amount is established.

1.11 Deferred Revenue Expenses:

Production cost of T.V. Serial's telecast is deferred, wherever ownership and other copyrights are with the company. This deferred expenditure is written off over the estimated useful life of T. V. Serials as estimated by the management. From the deferred Revenue Expenditure, Production Cost of Serials, the Production / Telecast of which has been discontinued are transferred to Intangible Assets under the head 'Software'. No depreciation has been charged on software. For the purpose of taxation the Production Cost are treated as revenue expenses, as per the legal opinion obtained by the company.

1.12 Deferred tax:

Deferred tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Deferred tax assets pertaining to unabsorbed depreciation and carry forward losses are recognized only to the extent there is a virtual certainty of realization.


Mar 31, 2014

1. Accounting Convention:

1.1 The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, with revenues recognized and expenses accounted on accrual basis unless otherwise stated.

Dividend on investments is accounted for on cash basis.

1.2 Use of estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities on the date of the financial statements. Disclosure of contingent liabilities and reported amounts of revenues and expenses for the year Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known/materialize.

1.3 Fixed Assets :

(a) Tangible assets are stated at cost less depreciation. Costs include cost incidental to and / or installation expenses incurred in putting the assets for its intended use.

(b) Intangible assets acquired are measured on initial recognition at cost.

1.4 depreciation /Amortization:

Company provides for depreciation/amortization on the Fixed Assets at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 on written down value method on a prorate basis from the month the assets are put to use during the financial year. In respect of assets sold or disposed off during the year, depreciation/amortization is provided till the month of sale or disposal off assets.

1.5 Investments:

Non-current investments are stated at cost.

1.6 Inventories :

(a) U-Matic Cassettes

Inventories of u-matic cassets are valued at "weighted average cost" as permissible under the Accounting Standard 2 (AS-2) "Valuation Of Inventories " issued by the Council of The Institute Of Chartered Accountants Of India.

(b) Work-in-progress:

Under production cost of serials, ad-films etc. are valued at "cost"

1.7 Contingent Liabilities :

Contingent liabilities in respect of show cause notices received from govt. authorities are considered only when they are converted into demands.

1.8 Foreign Currency Transactions :

Foreign Currency transactions are accounted for at the exchange rates prevailing on the date of the transactions. Foreign Currency receivables and payables are valued at the closing price at the year end in accordance with the Accounting Standard 11 (AS 11) Foreign Currency Transactions issued by the Institute of Chartered Accountants of India. Gains and losses on settlement/translation of monetary assets and liabilities are recognized in the statement of profit and loss.

1.9 Revenue Recognition:

Realizations in respect of serials are shown at gross.

In respect of serials, income is recognised in the Statement of Profit and Loss as and when the relevant programme or the episode is telecast.

In respect of export of serials, income is recognised in the statement of Profit and Loss only when the relevant serials are delivered to and accepted by the buyers and all the significant risks and rewards of telecasting rights of programme have been transferred to the buyers.

In respect of Ad-Films, income is recognised when the completed commercial cassettes is delivered to the buyer.

In respect of released feature films income is recognised as and when the right to receive the amount is established.

1.10 Deferred Revenue Expenses:

Production cost of T.V. Serial''s telecast is deferred, wherever ownership and other copyrights are with the company. This deferred expenditure is written off over the estimated useful life of T V. Serials as estimated by the management.

From the deferred Revenue Expenditure, Production Cost of Serials, the Production / Telecast of which has been discontinued are transferred to Intangible Assets under the head ''Software''. No depreciation has been charged on software.

For the purpose of taxation the Production Cost are treated as revenue expenses, as per the legal opinion obtained by the company.

1.11 deferred tax:

Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Deferred tax assets pertaining to unabsorbed depreciation and carry forward losses are recognized only to the extent there is a virtual certainty of realization.

Notes:

1. Shareholders holding more than 5% of the total share capital

Pamma Mehta holds 94,90,355 ( 2013: 94,90,355) Equity shares of Rs.2/- each aggregating to 16.52% (2013: 16.52%) Premkrishen Malhotra holds 93,16,355 ( 2013: 93,16,355) Equity shares of Rs.2/- each aggregating to 16.22% (2013: 16.22%) Sunil Mehta holds 90,09,315 ( 2013: 90,09,315) Equity shares of Rs.2/- each aggregating to 15.69% (2013: 15.69%)

Sunita P Malhotra holds 51,65,135 ( 2013: 51,65,135) Equity shares of Rs.2/- each aggregating to 8.99% (2013: 8.99%)


Mar 31, 2012

1. ACCOUNTING CONVENTION:

1.1 The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, with revenues recognized and expenses accounted on accrual basis unless otherwise stated. Dividend on investments is accounted for on cash basis.

1.2 All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current- non current classification of assets and liabilities.

1.3 Use of estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities on the date of the financial statements, disclosure of contingent liabilities and reported amounts of revenues and expenses for the year Estimates are based on historical experience, where applicable and other assumptions that management believes-re reasonable under the1 circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known/materialize.

1.4 Fixed Assets :

(a) Tangible assets are stated at cost less depreciation. Costs include cost incidental to and / or installation expenses incurred in putting the assets for its intended use.

(b) Intangible assets acquired are measured on initial recognition at cost.

1.5 Depreciation /Amortization

Company provides for depreciation/amortization on the Fixed Assets at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 on written down value method on a prorate basis from the month the assets are put to use during the financial year. In respect of assets sold or disposed off during the year, depreciation/amortization is provided till the month of sale or disposal off assets.

1.6 Investments:

Non-current investments are stated at cost.

1.7 Inventories :

(a) U-Matic Cassettes

Inventories of u-matic cassets are valued at "weighted average cost" as permissible under the Accounting Standard 2 (AS-2) "Valuation Of Inventories " issued by the Council of The Institute Of Chartered Accountants Of India.

(b) Work-in-progress:

Under production cost of serials, ad-films etc. are valued at "cost"

1.8 Contingent Liabilities :

Contingent liabilities in respect of show cause notices received from govt, authorities are considered only when they are converted into demands.

1.9 Foreign Currency Transactions :

Foreign Currency transactions are accounted for at the exchange rates prevailing on the date of the transactions. Foreign Currency receivables and payables are valued at the closing price at the year end in accordance with the Accounting Standard 11 (AS 11) Foreign Currency Transactions issued by the Institute of Chartered Accountants of India. Gains and losses on settlement/translation of monetary assets and liabilities are recognized in the statement of profit and loss.

1.10 Revenue Recognition:

Realizations in respect of serials are shown at gross.

In respect of serials, income is recognised in the Statement of Profit and Loss as and when the relevant programme or the episode is telecast.

In respect of export of serials, income is recognised in Statement of Profit & Loss only when the relevant serials are delivered to and accepted by the buyers and all the significant risks and rewards of telecasting rights of programme have been transferred to the buyers.

In respect of Ad Films, income is recognised when the completed commercial cassettes is delivered to the buyer.

In respect of released feature films income is recognised as and when the right to receive the amount is established.

1.11 Deferred Revenue Expenses:

Production cost of T.V. Serial's telecast is deferred, wherever ownership and other copyrights are with the company. This deferred expenditure is written off over the estimated useful life of T. V. Serials as estimated by the management.

From the deferred Revenue Expenditure, Production Cost of Serials, the Production / Telecast of which has been discontinued are transferred to Intangible Assets under the head 'Software'. No depreciation has been charged on software.

For the purpose of taxation the Production Cost are treated as revenue expenses, as per the legal opinion obtained by the company. .

1.12 Deferred tax:

Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Deferred tax assets pertaining to unabsorbed depreciation and carry forward losses are recognized only to the extent there is a virtual certainty of which realization.


Mar 31, 2010

1. Basis Of Presentation / Accounting :

The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, with revenues recognised and expenses accounted on accrual basis unless otherwise stated. Dividend on investments is accounted for on cash basis.

2. Fixed Assets :

Fixed Assets are stated at cost less depreciation. Costs include cost incidental to and / or installation expenses incurred in putting the assets for its intended use.

3. Investments:

Long term investments are stated at cost.

4. Depreciation :

Company provides for depreciation on the Fixed Assets at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 on Written Down Value Method. Depreciation on additions to assets during the year is provided on a proportionate basis. No depreciation has been charged on land and building during the year as written down value consist of cost of land only.

5. Inventories :

Inventories are valued at weighted average cost as permissible under the Accounting Standard 2 (AS-2)" Valuation Of Inventories " issued by the Council of The Institute Of Chartered Accountants Of India.

6. Contingent Liabilities :

Contingent liabilities in respect of show cause notices received are considered only when they are con- verted into demands.

7. Foreign Currency Transactions :

Foreign Currency transactions are accounted for at the exchange rates prevailing on the date of the transac- tions. Foreign Currency receivables and payables are valued at the closing price at the year end in accor- dance with the Accounting Standard 11 (AS 11) Foreign Currency Transactions issued by the Institute of Chartered Accountants of India.

8. Miscellaneous Expenditure :

Preliminary Expenses :

Preliminary expenses incurred before 1 st April, 1998 are being written off equally over a period of ten years. Preliminary Expenses incurred after 31st March, 1998 are amortised in five equal installments over the years.

Deffered Cost of Production:

Deffered cost of production of the feature flim " Garv- Pride and Honour" is being written off equally over a period of 5 years.

9. Revenue Recognition:

Realisations in respect of serials are shown at gross.

In respect of serials, income is recognised in the Profit & Loss Account as and when the relevant programme or the episode is telecast.

In respect of export of serials, income is recognised in Profit & Loss Account only when the relevant serials are delivered to and accepted by the buyers and all the significant risks and rewards of telecasting rights of programme have been transferred to the buyers.

In respect of Ad Films, income is recognised when the completed commercial cassettes is delivered to the buyer.

In respect of released feature films income is recognised as and when the right to receive the amount is established.

Deferred Revenue Expenses:

Production cost of T.V. Serials telecast is deferred, wherever ownership and other copyrights are with the company. This deferred expenditure is written off over the estimated useful life of T. V. Serials as estimated by the management.

From the deferred Revenue Expenditure, Production Cost of Serials, the Production / Telecast of which has been discontinued are transferred to Fixed Assets under the head Software. No depreciation has been charged on software.

For the purpose of taxation the Production Cost are treated as revenue expenses, as per the legal opinion obtained by the company.

 
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