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Accounting Policies of Iris Mediaworks Ltd. Company

Mar 31, 2013

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the companies Act,1956,subject to what is stated herein below, as adopted consistently by the company.

b) Method of Accounting employed by the firm is on accrual basis both as to expenditure and income by following the concept of materiality.

c) Accounts have been prepared on Historical cost and accrual basis except for government dues which are accounted for in the year of receipt of the relevant order.

2. FIXED ASSETS:-

a) Intangible Assets:-Intangible assets comprise of Cost of Television serials produced and film rights purchased.

b) Tangible Fixed Assets: Fixed Assets are stated at Cost less Depreciation. The Company capitalizes all cost relating to acquisition and installation of fixed assets.

c) Capital Work in Progress: These represent under production TV Serials and other assets of similar nature.

3. DEPRECIATION:

a) Intangible Asset: Amortization has been made at 25% on written down value of assets, being Television Serials, acquired/created in the current period.

b) Tangible Fixed Asset: Depreciation is provided on written down value method as per Schedule XIV of the Companies Act, 1956. For all assets acquired during the period depreciation has been provide on pro-rate basis other than on those assets whose actual Cost did not exceed rupees, five thousand on which depreciation has been provided at the rate of One Hundred percent. No depreciation has been provided on assets sold or discarded during the period.

4. INVESTMENT:

The Company has maintained proper records of transactions and contracts in respect of investments in shares, debentures and other securities and those timely entries have been made therein. The shares, debentures and other securities have been held by the Company in its own name except to the exemption granted under Section 49(4) of the Companies Act, 1956.

5. FOREIGN CURRENCY TRANSACTION:

Foreign exchange transactions are recorded at the rate of exchange prevailing on the date of the Transaction. Gains or Losses due to difference in the rate of exchange at the time of payment are recognized in the Statement of Profit & Loss as Exchange rate Fluctuation account Provision for gains/losses for yearend monetary assets or liabilities in foreign exchange have not been recognized at the rates prevailing as at the Balance Sheet Date.

6. EMPLOYEE BENEFITS:

In view of the number of employees being below the stipulated numbers, the Provident Fund, ESIC, Bonus and payment of Gratuity Act are not applicable to the company for the year.

7. REVENUE RECOGNITION:

I. Revenue from production and sale of rights (films, programme, TV serials etc.) and Advertisement revenue is recognized on accrual basis.

II. Revenue from sale of products is stated net off discounts and any applicable duties and taxes on dispatch of goods in accordance with terms of sales.

8. GRATUITY :

No Provision is made for gratuity in the accounts.

9. TAXES ON INCOME:

a) No provision for taxation has been made for the current period as the Company has brought forward Business losses and unabsorbed depreciation.

b) As per AS-22, the deferred tax asset and deferred tax is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax assets/liability is reviewed to reassure realization.

c) The Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

10. IMPAIRMENT OF ASSETS:

None of the assets have been revalued during the period under audit.

11. PROVISION,CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving substantial degree of estimation in measurement is recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

12. PRELIMINERY EXPENSES:

During the year, Rs. 26,850/- had been written off as Preliminary expenses.

13. Earnings Per Share(EPS):

The earnings considered in ascertaining the Company''s EPS are computed as per Accounting Standard 20 on "Earning per Share", issue by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares during the period. The diluted EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.

14. Cash Flow Statement

Cash Flow Statement has been prepared in accordance with the Accounting standard Issued by Institute of Chartered Accounts of India on indirect method.

15. Accounting for CENVAT Credit:

CENVAT benefit is accounted for reducing the purchase cost of material/fixed assets and Services, where CENVAT credit is available.


Mar 31, 2012

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :-

a) The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the companies Act,1956,subject to what is stated herein below, as adopted consistently by the company.

b) Method of Accounting employed by the firm is on accrual basis both as to expenditure and income by following the concept of materiality.

c) Accounts have been prepared on Historical cost and accrual basis except for government dues which are accounted for in the year of receipt of the relevant order.

2. FIXED ASSETS:-

a) Intangible Assets:-Intangible assets comprise of Cost of Television serials produced and film rights purchased.

b) Tangible Fixed Assets: Fixed Assets are stated at Cost less Depreciation. The Company capitalizes all cost relating to acquisition and installation of fixed assets.

c) Capital Work in Progress: These represent under production TV Serials and other assets of similar nature.

3. DEPRECIATION:

a) Intangible Asset: Amortization has been made at 25% on written down value of assets, being Television Serials, acquired/created in the current period.

b) Tangible Fixed Asset: Depreciation is provided on written down value method as per Schedule XIV of the Companies Act, 1956. For all assets acquired during the period depreciation has been provide on pro-rate basis other than on those assets whose actual Cost did not exceed rupees, five thousand on which depreciation has been provided at the rate of One Hundred percent. No depreciation has been provided on assets sold or discarded during the period.

4. INVESTMENT:

The Company has maintained proper records of transactions and contracts in respect of investments in shares, debentures and other securities and those timely entries have been made therein. The shares, debentures and other securities have been held by the Company in its own name except to the exemption granted under Section 49(4) of the Companies Act, 1956.

5. FOREIGN CURRENCY TRANSACTION:

Foreign exchange transactions are recorded at the rate of exchange prevailing on the date of the Transaction. Gains or Losses due to difference in the rate of exchange at the time of payment are recognized in the Statement of Profit & Loss as Exchange rate Fluctuation account Provision for gains/losses for yearend monetary assets or liabilities in foreign exchange have not been recognized at the rates prevailing as at the Balance Sheet Date.

6. EMPLOYEE BENEFITS:

In view of the number of employees being below the stipulated numbers, the Provident Fund, ESIC, Bonus and payment of Gratuity Act are not applicable to the company for the year.

7. REVENUE RECOGNITION:

I. Revenue from production and sale of rights (films, programme, TV serials etc.) and Advertisement revenue is recognized on accrual basis.

II. Revenue from sale of products is stated net off discounts and any applicable duties and taxes on dispatch of goods in accordance with terms of sales.

8. GRATUITY :

No Provision is made for gratuity in the accounts.

9. TAXES ON INCOME:

a) No provision for taxation has been made for the current period as the Company has brought forward Business losses and unabsorbed depreciation.

b) As per AS-22, the deferred tax asset and deferred tax is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax assets/liability is reviewed to reassure realization.

c) The Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

10. IMPAIRMENT OF ASSETS:

None of the assets have been revalued during the period under audit.

11. PROVISION,CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving substantial degree of estimation in measurement is recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

12. PRELIMINERY EXPENSES:

During the year, Rs. 35,900/- had been written off Preliminary expenses.

13. Earnings Per Share(EPS):

The earnings considered in ascertaining the Company''s EPS are computed as per Accounting Standard 20 on "Earning per Share", issue by the Institute of Chartered

Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares during the period. The diluted EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.

14. Cash Flow Statement

Cash Flow Statement has been prepared in accordance with the Accounting standard Issued by Institute of Chartered Accounts of India on indirect method.

15. Accounting for CENVAT Credit:

CENVAT benefit is accounted for reducing the purchase cost of material/fixed assets and Services, where CENVAT credit is available.


Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(a) The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principals and the provisions of the companies Act, 1956, subject to what is stated herein below, as adopted consistently by the Company.

(b) Method of Accounting employed by the firm is on accrual basis both as to expenditure and income by following the concept of materiality.

(c) Accounts have been prepared on Historical cost and accrual basis except for government dues which are accounted for in the year of receipt of the relevant order

(d) The financial statements have been prepared for the period of 9 months i.e. from 1st July, 2010 to 31st March, 2011.

2. FIXED ASSETS :

(a) Intangible Assets Intangible assets comprise of Cost of Television serials produced and film rights purchased.

(b) Tangible Fixed Assets : Fixed Assets are stated at Cost less Depreciation. The Company capitalizes all cost relating to acquisition and installation of fixed assets.

(c) Capital Work in Progress : These represent under production TV Serials and other assets of similar nature.

3. DEPRECIATION :

a) Intangible Asset : Amortisation has been made at 25% on written down value of assets, being Television Serais, acquired/created in the current period.

b) Tangible Fixed Asset : Depreciaiotn is provided on written down value method as per Schedule XIV of the Companies Act, 1956. For all assets acquired during the period depreciation has been provided on pro-rata basis other than on those assets whose actual Cost did not exceed rupees, five thousand on which depreciation has been provided at the rate of One Hundred percent. No depreciation has been provided on assets sold or discarded during the period.

3. Investment :

Long Term unquoted investments are valued at cost price.

4. FOREIGN CURRENCY TRANSACTION :

Foreign exchange transactions are recorded at the rate of exchange prevailing on the date of the Transaction. Gains or Losses due to difference in the rate of exchange at the time of payment are recognised in the Profit & loss account as Exchange rate Fluctuation account Provisions for gains/losses for year end monetary assets or liabilities in foreign exchange have not been recognised at the rates prevailing as at the Balance Sheet Date.

5. EMPLOYEE BENEFITS :

During the year under review, the Liability in respect of employee benefits as required under AS-15 is not provided.

6. REVENUE RECOGNITION :

Revenue from production and sale of rights (films, programme, TV serials etc.) and Advertisement revenue is recognised on accrual basis.

7. NO PROVISION IS MADE FOR GRATUITY IN THE ACCOUNTS.

8. TAXES ON INCOME :

a) No provision for taxation has been made for the current period as the Company has brought forward Business losses and unabsorbed depreciation.

b) As per AS-22, the deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax assets/liability are reviewed to reassure realization.

c) The Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallise.

During the period, the deferred tax liability of Rs. 10,91,771/- has been recognised in the Profit & Loss Account.

9. IMPAIRMENT OF ASSETS

None of the assets have been revalued during the period under audit.

10. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

Provision involving substantial degree of estimation in measurement is recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

11. PRELIMINERY EXPENSES :

During the year, Rs. 26,550/- had been written off as Preliminary expenses.

 
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