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Accounting Policies of Eduexel Infotainment Ltd. Company

Mar 31, 2014

1.1 Basis of Preparation

The financial statements are prepared on accrual basis of accounting under the historical cost convention and in accordance with Generally Accepted Accounting Principles in India and the relevant provisions of the Companies Act, 1956 including Accounting Standards notified there under.

1.2 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3. Fixed Assets, Intangible Assets and Depreciation / Amortisation

Fixed Assets are stated at cost net of recoverable taxes, less accumulated depreciation and impairment loss, if any. Cost includes all cost incurred to bring the assets to their working conditions and location for its intended use, any trade discount and rebates are deducted in arriving at the purchases price, Borrowing costs are capitalized only if capitalization criteria are met.

Depreciation on Fixed Assets is provided on written down value method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.4. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount. Based on the internal and external sources of information available with the company there is no impairment of assets taken place during the year.

1.5. Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Monetary items denominated in foreign currencies at the yearend are restated at the forward exchange rates prevailing as on the year end for the date of its retirement.

In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized and amortized over the life of the contract.

Non monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account as Purchase expense.

1.6 Investments

Long Term Investments are stated at cost and provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

1.7 Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any.

Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing /other overheads incurred in bringing them to their respective present location and condition.

1.8 Revenue Recognition

Revenue is recognized on transfer of significant risk and rewards, it can be reliably measured and it is reasonable to expect ultimate collection and there exists no significant uncertainty in its ultimate realizations.

Claims by or against the company are accounted as and when acknowledged /accepted / settled / received.

1.9 Employee Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered.

Contribution to defined contribution scheme such as Provident Fund and ESI are recognized as and when incurred.

Leave encashment is expensed to the revenue as and when the company expects to pay for the compensated absences.

1.10 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the 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 Profit and Loss account.

1.11 Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961.

Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

1.12 Premium on Redemption of Bonds / Debentures

Premium on redemption of bonds / debentures, net of tax impact, are adjusted against the Securities Premium Account.

1.13 Provisions, Contingent Liabilities and Contingent Assets

Provision is recognised when there is a present obligation as a result of a past event and it is possible that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

No provision is made for contingent liabilities, which are contingent in nature, but if material, these are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

1.1 Basis of Preparation

The financial statements are prepared on accrual basis of accounting under the historical cost convention and in accordance with Generally Accepted Accounting Principles in India and the relevant provisions of the Companies Act, 1956 including Accounting Standards notified there under.

1.2 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3. Fixed Assets, Intangible Assets and Depreciation / Amortisation

Fixed Assets are stated at cost net of recoverable taxes, less accumulated depreciation and impairment loss, if any. Cost includes all cost incurred to bring the assets to their working conditions and location for its intended use, any trade discount and rebates are deducted in arriving at the purchases price, Borrowing costs are capitalized only if capitalization criteria are met.

Depreciation on Fixed Assets is provided on written down value method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.4. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount. Based on the internal and external sources of information available with the company there is no impairment of assets taken place during the year.

1.5. Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Monetary items denominated in foreign currencies at the yearend are restated at the forward exchange rates prevailing as on the year end for the date of its retirement.

In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized and amortized over the life of the contract.

Non monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account as Purchase expense.

1.6 Investments

Long Term Investments are stated at cost and provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

1.7 Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any.

Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing /other overheads incurred in bringing them to their respective present location and condition.

1.8 Revenue Recognition

Revenue is recognized on transfer of significant risk and rewards, it can be reliably measured and it is reasonable to expect ultimate collection and there exists no significant uncertainty in its ultimate realizations.

Claims by or against the company are accounted as and when acknowledged /accepted / settled / received.

1.9 Employee Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered.

Contribution to defined contribution scheme such as Provident Fund and ESI are recognized as and when incurred.

Leave encashment is expensed to the revenue as and when the company expects to pay for the compensated absences.

1.10 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the 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 Profit and Loss account.

1.11 Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961.

Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

1.12 Premium on Redemption of Bonds / Debentures

Premium on redemption of bonds / debentures, net of tax impact, are adjusted against the Securities Premium Account.

1.13 Provisions, Contingent Liabilities and Contingent Assets

Provision is recognised when there is a present obligation as a result of a past event and it is possible that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

No provision is made for contingent liabilities, which are contingent in nature, but if material, these are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

1.1 Basis of Preparation

The financial statements are prepared on accrual basis of accounting under the historical cost convention and in accordance with Generally Accepted Accounting Principles in India and the relevant provisions of the Companies Act, 1956 including Accounting Standards notified there under.

1.2 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made_ that affect the amount of assets and liabilities and disclosures of contingent liabilities on the date of the ctatpmpnts and the reported amount of revenues and expenses during the reporting period. estimates ate recognized in the period in which the results are known/ materialized.

1.3 Fixed Assets, Intangible Assets and Depreciation / Amortisation

Fixed Assets are stated at cost net of recvoverabie taxes,less accumulated depreciation and impairment loss,if any, Cost includes all cost incurred to bring the assets to their working conditions and location for its intended use.any trade discount and rebates are deducted in arriving at the purchases price, Borrowing costs are capitalized only if capitalization criteria are met.

Depreciation on Fixed Assets is provided on written down value method (WDV) a. the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.4. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverabie value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount. Based on the internal and external sources of information available with the company there is no impairment of assets taken place during the year.

1.5 Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Monetary items denominated in foreign currencies at the yearend are restated at the forward exchange rates prevailing as on the year end for the date of its retirement.

Non monetary foreign currency items are carried at cost.

Any income of expense on account of exchange difference either on settlement or on translation is fecund in the Profit and Loss account as Purchase expense.

1.6 Investments

Long Term Investments are stated at cost and provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

1.7 Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any.

Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing /other overheads incurred in bringing them to their respective present location and condition.

1.8 Revenue Recognition

Revenue is recognized on transfer of significant risk and rewards, it can be reliably measured and it is reasonable to expect ultimate collection and there exists no significant uncertainty in its ultimate realizations.

Claims by or against the company are accounted as and when acknowledged /accepted / settled / received.

1.9 Employee Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered.

Contribution to defined contribution scheme such as Provident Fund and ESI are recognized as and when incurred.

Leave encashment is expensed to the revenue as and when the company expects to pay for the compensated absences.

1.10 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the 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 Profit and Loss account.

1.11 Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961.

Deferred tax resulting from ''timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

1.12 Premium on Redemption of Bonds / Debentures

Premium on redemption of bonds / debentures, net of tax impact, are adjusted against the Securities Premium Account.

1.13 Provisions, Contingent Liabilities and Contingent Assets

Provision is recognised when there is a present obligation as a result of a past event and it is possible that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

No provision is made for contingent liabilities, which are contingent in nature, but if material, these are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

I General

The financial statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act.

Accounting policies / compliance of Accounting Standards issued by the Institute of Chartered Accountants of India:

(1) AS 1: Disclosure on accounting policies

The accounts are maintained on accrual basis as a going concern.

(2) AS 2: Valuation of inventories

Inventories are valued at lower of cost or net realizable value. Inventories of picture-in-progress, serials purchased for re-sale, film distribution rights secured, film negative and telecast rights held are valued at landed cost.

(3) AS 3: Cash flow statements

Cash Flow statement prepared under indirect method is attached to the Balance Sheet and Profit and Loss account.

(4) AS 4: Contingencies and event occurring after the balance sheet date

There have been no events after the balance sheet that has a bearing on the financial statements.

(5) AS 5: Net profit or loss for the period, prior period items and changes in accounting policies

(i) Net profit for the period:

All items of income and expense in the period are included in the determination of net profit for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard.

(ii) Prior period items: Nil

(iii) Accounting policies:

There has been no change in the Companys accounting policy with respect to treatments of expenses or income. The accounts are maintained in accrual basis as mentioned elsewhere in the report.

(6) AS 6: Depreciation Accounting

Depreciation is provided under as per Companies Act, 1956 and at the rates specified therein.

(7) AS 7: Accounting for Construction Contracts

The company does not engage in any construction work/contract and hence AS 7 is not applicable.

(8) AS 8: Accounting for Research and Development

This standard was withdrawn with effect from 1 -4-2003 consequent to Accounting Standard AS 26 on Accounting for Intangible Assets.

(9) AS 9: Revenue recognition

Revenue from programme software/feature films produced are recognised on the time-and- material basis and billed to clients as per the terms of specific contracts for telecast etc. Income arising from distribution/re-distribution of feature films, sale of negative rights, telecast rights is recognized as income in the year of sale.

(10) AS 10: Accounting for fixed assets

Tangible fixed assets are stated at cost and include any other attributable cost for bringing the assets to working condition for their intended use.

Machinery specific spares other than those required for regular maintenance are capitalized as a part of tangible fixed assets.

(11) AS 11: Accounting for effects in foreign exchange rates

There has been no transaction on account of receipts/payments and hence compliance with the requirements of AS-11 does not arise.

(12) AS 12: Accounting for Government grants

The Company has not received any grant from the Government.

(13) AS 13: Accounting of Investments

The company holds no investments and hence reporting on the compliance aspect does not arise.

(14) AS 14: Accounting for amalgamations

The above standard is not applicable as there was no amalgamation during the year.

(15) AS 15: Accounting for Employee Benefits

The company is yet to formulate a gratuity plan and also register with Provident Fund and Employees State Insurance Corporation and the same shall be done as when these become applicable to the company.

(16) AS 16: Borrowing cost

There has been no borrowing and hence no cost associated with borrowal of funds has been incurred. Consequently, compliance with the requirements of AS-16 does not arise.

(17) AS 17: Segment reporting

The Company operates in the same segments which are subject to similar risks and returns.

(18) AS 18: Related party disclosure Related Parties:

Apart from Mr. C. Vasan, Director there are no related parties associated with the company. Mr. C. Vasan draws no remuneration from the company.

(19) AS 19: Leases

No lease agreements have been entered into and hence reporting on the compliance aspect does not arise.

(20) AS 20: Earnings per share

Basic earnings per share are disclosed in the Profit and Loss account.

There is no diluted earnings per share as there are no dilutive potential equity shares:

Basic/Diluted EPS before considering Extra-ordinary items - Rs. 1.27

Basic/Diluted EPS after considering Extra-ordinary items - Rs. 1.27

Weighted average number of shares* - 54,06,205

Face Value per share (fully paid up) - Rs. 10/-

(21) AS 21: Consolidated financial statements

The company has no subsidiaries and hence no consolidated financial statement has been prepared.

(22) AS 22: Accounting for taxes on income

The company has provided necessary Income Tax including fringe benefit tax, as applicable in accordance with the provisions of the Income Tax, 1961.

(23) AS 23: Accounting for Investments in associates

Since there has been no investment of any sort in any company/venture reporting on compliance with the Accounting Standard 23 does not arise.

(24) AS 24: Discontinuing Operations

The Company has not discontinued any operations during the year.

(25) AS 25: Interim Financial Reporting

The enterprise accounts are subject to interim financial reporting as mandated by SEBI by its statutory auditor.

(26) AS 26: Intangible Assets

The Company has not acquired any intangible asset during the year.

(27) AS 27: Financial Reporting of Interests in Joint Ventures

Since there has been no investment of any sort in any company/venture reporting on compliance with the Accounting Standard 27 does not arise.

(28) AS 28: Impairment of Assets

At the Balance Sheet date, an assessment is done to determine whether there is any indication of impairment in the carrying amount of the Companys fixed assets. If any such indication exists, the assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. After recognition of impairment loss, the depreciation charge for the asset is adjusted in future periods to allocate the assets revised carrying amount less its residual value, if any over its remaining useful life.

29) AS 29: Provisions, Contingent Liabilities and Contingent Assets

Provisions-there are no warranty obligations or any other matter requiring provision in accounts Contingent Liabilities-Amount for which company is contingently liable- Nil Contingent Assets-Nil

 
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