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Notes to Accounts of KSS Ltd.

Mar 31, 2015

1. Earnings per share

The basic earnings per equity share are computed by dividing the net profit attributable to the equity shareholders for the reporting period by the weighted average number of equity shares outstanding during the reporting period. 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.

2. Leases

The Company has entered into leases for its office premises. These leases have an average life of between three and five years with no renewal option included in the contracts. There are no restrictions placed upon the company by entering into these leases.

3. Related party transaction

As per accounting standard on Related Party Disclosure (AS-18) as notified by the Companies Accounting Standard Rules, 2006 (as amended), the names of the related parties of the Company are as follows:

Names of related parties and related party relationship

Related parties where control exists irrespective of whether transactions have occurred or not:

Subsidiaries

- Sera Sera Box Office Private Limited

- Sera Sera Miniplex Limited

- Sera Sera Digital Cinema Private Limited

- Sera Sera Productions FZE

Step down subsidiaries/Limited Liability Partnerships

- Sera Sera Consultancy Private Limited K Kampus Education Private Limited K Sera Sera Holding PTY Limited KSS Capital Limited

Key Managerial Personnel

Satish Panchariya, Chairman & Director Shailesh Bapat, Company Secretary Tanu Singh, Company Secretary

4. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

The Maharashtra Government had issued a notification on August 30, 2005, as per which entities leasing copyrights of cinematographic films are required to pay value added tax (VAT) @ 4% retrospectively wef. May 1, 2000. Subsequently, upon the representation of The Cinematograph Exhibitor's Association of India' (The Association'), the levy of the said tax was waived for the period May 1, 2000 to March 31, 2005. The revised notification extending similar relief up to the period commencing from April 1, 2005 is being pursued by the association. The Company, in line with the view taken by the Industry, is of the opinion that VAT is not applicable to the activities carried by the Company and has also taken a legal opinion in this regard. The Company has also not received any demand notice from the VAT authorities. As a matter of prudence, the Company has made ad hoc payments of Rs 1,500,000 under protest, which is disclosed under 'Loans and Advances'. Having regard to the above facts, the Company does not expect any liability on this account.

The Company has cases pending at the Central Investigation Unit (Customs) and Securities Exchange Board of India. The departments are yet to passfinal order hence the liability for the same is currently unascertainable

5. Balances in respect of certain sundry debtors, sundry creditors and loans and advances are taken as shown by the books of account and are subject to confirmation and consequent adjustments and reconciliation, if any.

6. As per Management opinion Current assets, loans and advances have a value on realization which in the ordinary course of the business would not be less than the amount at which they are stated in the balance sheet and the provisions for all known and determined liabilities are adequate and not in excess of the amount reasonably required.

7. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

There are no micros, small and medium enterprises, to which the Company owes dues, which are outstanding for more than 45 days as at March 31, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

8. Figures in brackets represent those of the previous year.

9. Figures for the previous year have been regrouped / amended wherever necessary.


Mar 31, 2014

1 (a) Terms / rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held.

(b) Details of shareholders holding more than 5% shares in the company

As per records of the company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

2 Long Term Borrowings

Company issued 2,367 (Two Thousand three Hundred sixty seven) Optionally Convertible Redeemable Bond of Rs 1,00,000/- each h to SBI GLOBAL FACTOR LIMITED ( Formerly known as GLOBAL TRADE FINANCE LIMITED) as per SEBI (ICDR) Guidelines. Issued on 29th January 2010. against the settlement of the amount borrowed by the company. As per Supreme Court Judgment dated 17th February 2014 in case no 24319/2013 that company have to pay 23.00 crore to SBI GLOBAL FACTOR LIMITED as below mentioned schedule other charges and interest wave off by the court. Company already paid Rs 10.00 crore to SBI GLOBAL FACTOR LIMITED on 10th March 2014 and balance Rs 6.00 crore, Rs 2.00 crore and Rs 5.00 Crore on or before 15th July, 2014, 15th August, 2014 and 15th September 2014 respectively.

3 Long Term Provisions

As per Supreme Court Judgment dated 17th February 2014 in case no 24319/2013 that other charges and interest wave off by the court. other charges is booked as an income and interest provided in earlier years Rs 3.7872 crore on Bond Value Rs 23.67 core @ 8% p.a. for 24 months is reversed during the year as per order.

4 Deferred tax

As per Accounting Standard 22 issued by ICAI Deferred tax assets are recognized only to the extent there is reasonable certainty that sufficient future taxable income will be available a gainst which such deferred tax assets can be realized. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

5 Short Term Borrowings

Company has accepted public deposit under Section 58A of the Companies Act, 1956 and Companies (Acceptance of Deposit) Rules, 1975 with respect to acceptance of Public Deposit by the Company. Company provide interest in books of accounts.

6 Other Current Liabilities

Statutory liabilities of Service tax company has applied for Voluntary Compliance Encouragement Scheme,2014 as per Notification No: 10/2014-Service tax- Tax due Declare Rs 57,49,701/- amount of Rs 28,74,851/- already paid by the company on dated 30st December 2014 and Rs 28,74,851/-, Remaining payable on or Before 30th June 2014 Rs 28,74,850/-

7 Short Term Provisions

Provision for Expenses includes Rs 2.876 crore as ROC Fees and Stamp duty payable includes additional fees for increase in authorized capital from 75 crore to 205 on dated 29th July 2009, and 205 to 220 crore on

8 Non Current Investment

Current investments are carried in the financial statements at cost and Long-term investments are also carried at cost. However, provision for diminution in value is not recognize other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

9 Other Income

As per Supreme Court Judgment dated 17th February 2014 in case no 24319/2013 that other charges Rs 50.45 lacs and interest wave off by the court. other charges is booked as an income and interest provided in earlier years Rs 3.7872 crore on Bond Value Rs 23.67 core @ 8% p.a. for 24 months is reversed during the year as per order.

10 Cost Of Operations

Sales booked in the year year 2009-10 is now reversed due to non compliance of agreement terms & Conditions by the buyer, and films rights and IPR return to company.

11 Financial Cost

As per Supreme Court Judgment dated 17th February 2014 in case no 243 19/20 13 that other charges and interest wave off by the court. other charges is booked as an income and interest provided in earlier years Rs 3.7872 crore on Bond Value Rs 23.67 core @ 8% p.a. for 24 months is reversed during the year as per order.

12. OTHER NOTES

CORPORATE INFORMATIONS

KSS Limited (BSE Scrip Code: 532071; NSE Scrip Code K SERA SERA) in a global player within the Indian media and entertainment. KSS Limited (''K Sera Sera Limited'' or ''the Company'') along with its wholly owned subsidiaries K Sera Sera Miniplex Limited ("KSS Miniplex"), K Sera Sera Digital Cinema Private Limited ("KSS Digital"), K Sera Sera Box Office Private Limited ("KSS Box Office") and K Sera Sera FZE ("KSS FZE"), K Bazaar Online Trading Private Limited ("K Bazaar"), and step down subsidiaries K Kampus Private Limited ("K Kampus"), K Sera Sera Consultancy Private Limited ("K Consultancy"), K Sera Sera Australia Holding (Pty) Limited ("KSS Australia") and KSS Capital Limited ("KSS Bermuda") is the most diversified media company. The Company is in to the business of production/distribution of movies and television serials. The Company through its subsidiaries and step down subsidiaries is into the business of Miniplexes, Digital Cinema, Education, Edutainment, Online Trading, Project Consultancy, International Film Distribution, General Trading (UAE) and investment in gold mines.

Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

Earnings per share

The basic earnings per equity share are computed by dividing the net profit attributable to the equity shareholders for the reporting period by the weighted average number of equity shares outstanding during the reporting period.

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.

Leases

The Company has entered into leases for its office premises. These leases have an average life of between three and five years with no renewal option included in the contracts. There are no restrictions placed upon the company by entering into these leases.

Related party transaction

As per accounting standard on Related Party Disclosure (AS-18) as notified by the Companies Accounting Standard Rules, 2006 (as amended), the names of the related parties of the Company are as follows:

Names of related parties and related party relationship

Related parties where control exists irrespective of whether transactions have occurred or not:

Subsidiaries

K Sera Sera Box Office Private Limited K Sera Sera Miniplex Private Limited K Sera Sera Digital Cinema Private Limited K Bazaar Online Private Limited K Sera Sera Productions FZ LLC K Sera Sera Productions FZE

Step down subsidiaries/Limited Liability Partnerships

K Sera Sera Consultancy Private Limited K Kampus Education Private Limited K Sera Sera Holding PTY Limited KSS Capital Limited K Kampus Edutrainment Limited Liability Partnership KSS Capital Limited ("KSS Bermuda")

Key Managerial Personnel

Brigadier Vinod Ahuja, Whole Time Director. Related parties with whom transactions have been taken place during the year.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

The Maharashtra Government had issued a notification on August 30, 2005, as per which entities leasing copyrights of cinematographic films are required to pay value added tax (VAT) @ 4% retrospectively wef. May 1, 2000. Subsequently, upon the representation of ''The Cinematograph Exhibitor''s Association of India'' (''The Association''), the levy of the said tax was waived for the period May 1, 2000 to March 31, 2005. The revised notification extending similar relief up to the period commencing from April 1, 2005 is being pursued by the association. The Company, in line with the view taken by the Industry, is of the opinion that VAT is not applicable to the activities carried by the Company and has also taken a legal opinion in this regard. The Company has also not received any demand notice from the VAT authorities. As a matter of prudence, the Company has made ad hoc payments of Rs 1,500,000 under protest, which is disclosed under ''Loans and Advances''. Having regard to the above facts, the Company does not expect any liability on this account.

The Company has cases pending at the Central Investigation Unit (Customs) and Securities Exchange Board of India. The departments are yet to pass final order hence the liability for the same is currently unascertainable

Contingent liabilities not provided for in respect of:

Particulars March 31, 2014 March 31, 2013

Guarantees issued by bank *In respect of the Company NIL NIL *In respect of a wholly owned subsidiary 160.39 160.39

Arrears of cumulative redeemable preference dividend 0.00 0.00

Claims against Company not acknowledged as debts and contested by the company. 417.14 336.14

Total 577.53 554.13

Subsidiary company business

Based on the fundamentals of the subsidiary company business, the management is of the opinion that it is strategically desirable for KSS Limited to continue to support the subsidiary through funding (including equity/debt infusion), through either fresh funds or conversion of existing loans into equity.

Balances in respect of certain sundry debtors, sundry creditors and loans and advances are taken as shown by the books of account and are subject to confirmation and consequent adjustments and reconciliation, if any.

As per the information and explanation given by the management that Share application money pending for allotment Rs 1141.58 lacs and Rs 384.05 lacs. The Board of the company has decided that said amount is adjusted against the some Loan and Advances and Share application money not recoverable.

As per Management opinion Current assets, loans and advances have a value on realization which in the ordinary course of the business would not be less than the amount at which they are stated in the balance sheet and the provisions for all known and determined liabilities are adequate and not in excess of the amount reasonably required.

Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

There are no micros, small and medium enterprises, to which the Company owes dues, which are outstanding for more than 45 days as at March 31, 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

Figures in brackets represent those of the previous year.

Figures for the previous year have been regrouped / amended wherever necessary.


Mar 31, 2013

1. CORPORATE INFORMATIONS

KSS Limited (BSE Scrip Code: 532071; NSE Scrip Code KSERASERA) in a global player within the Indian media and entertainment.

KSS Limited (‘K Sera Sera Limited'' or''the Company'') along with its wholly owned subsidiaries K Sera Sera Maniple Private Limited ("KSS Minplex"), K Sera Sera Digital Cinema Private Limited ("KSS Digital"), K Sera Sera Box Office Private Limited ("KSS Box Office") and K Sera Sera FZE ("KSS FZE"), K Bazaar Online Private Limited ("K Bazaar"), and step down subsidiaries K Kampus Private Limited ("K Kampus"), K Sera Sera Consultancy Private Limited ("K Consultancy"), K Sera Sera Australia Holding (Pty) Limited ("KSS Australia") and KSS Capital Limited ("KSS Bermuda") is the most diversified media company. The Company is in to the business of production/distribution of movies and television serials. The Company through its subsidiaries and step down subsidiaries is into the business of Miniplexes, Digital Cinema, Education, Edutainment, Online Trading, Project Consultancy, International Film Distribution, General Trading (UAE) and investment in gold mines.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

3.1 Earnings per share

The basic earnings per equity share are computed by dividing the net profit attributable to the equity shareholders for the reporting period by the weighted average number of equity shares outstanding during the reporting period.

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.

3.2 Leases

The Company has entered into leases for its office premises. These leases have an average life of between three and five years with no renewal option included in the contracts. There are no restrictions placed upon the company by entering into these leases.

3.3 Related party transaction

As per accounting standard on Related Party Disclosure (AS-18) as notified by the Companies Accounting Standard Rules, 2006 (as amended), the names of the related parties of the Company are as follows:

Names of related parties and related party relationship

Related parties where control exists irrespective of whether transactions have occurred or not:

Subsidiaries

K Sera Sera Box Office Private Limited K Sera Sera Miniplex Private Limited K Sera Sera Digital Cinema Private Limited K Bazaar Online Private Limited K Sera Sera Productions FZ LLC K Sera Sera Productions FZE

Step down subsidiaries/Limited Liability Partnerships

K Sera Sera Consultancy Private Limited K Kampus Education Private Limited K Sera Sera Holding PTY Limited KSS Capital Limited

K Kampus Edutrainment Limited Liability Partnership

KSS Capital Limited ("KSS Bermuda")

Key Managerial Personnel

Brigadier Vinod Ahuja, Managing Director. Related parties with whom transactions have taken place during the year

3.4 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

The Maharashtra Government had issued a notification on August 30, 2005, as per which entities leasing copyrights of cinematographic films are required to pay value added tax (VAT) @ 4% retrospectively wef. May 1, 2000. Subsequently, upon the representation of''The Cinematograph Exhibitor''s Association of India'' (‘The Association''), the levy of the said tax was waived for the period May 1, 2000 to March 31, 2005. The revised notification extending similar relief up to the period commencing from April 1, 2005 is being pursued by the association. The Company, in line with the view taken by the Industry, is of the opinion that VAT is not applicable to the activities carried by the Company and has also taken a legal opinion in this regard. The Company has also not received any demand notice from the VAT authorities. As a matter of prudence, the Company has made ad hoc payments of Rs 1,500,000 under protest, which is disclosed under ‘Loans and Advances''. Having regard to the above facts, the Company does not expect any liability on this account.

The Company has cases pending at the Central Investigation Unit (Customs) and Securities Exchange Board of India. The departments are yet to pass final order hence the liability for the same is currently unascertainable

Based on the fundamentals of the subsidiary company business, the management is of the opinion that it is strategically desirable for KSS to continue to support the subsidiary through funding (including equity/debt infusion), through either fresh funds or conversion of existing loans into equity.

3.5 Balances in respect of certain sundry debtors, sundry creditors and loans and advances are taken as shown by the books of account and are subject to confirmation and consequent adjustments and reconciliation, if any.

3.6 As per Management opinion Current assets, loans and advances have a value on realization which in the ordinary course of the business would not be less than the amount at which they are stated in the balance sheet and the provisions for all known and determined liabilities are adequate and not in excess of the amount reasonably required.

3.7 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

There are no micros, small and medium enterprises, to which the Company owes dues, which are outstanding for more than 45 days as at March 31, 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3.8 Figures in brackets represent those of the previous year.

3.9 Figures for the previous year have been regrouped / amended wherever necessary.


Mar 31, 2011

1. Background

K Sera Sera Limited (Foremely know as K Sera Sera Productions Limited) ('K Sera Sera' or 'the Company') was incorporated on September 6, 1995. In the year 2002, the object clause was altered to carry on the business of entertainment through in-house production of motion pictures, television serials and distribution of films produced by third parties.

2. Contingent liabilities not provided for in respect of:

Particulars March 31,2011 March 31,2010

Guarantees issued by bank

- In respect of the Company NIL NIL

- In respect of a wholly owned 16,039,756 16,039,756 subsidiary

Arrears of cumulative redeemable 5,760,792 5,760,792 preference dividend

Claims against Company not 5,49,24,306 112,285,745 acknowledged as debts and contested by the company.

Total 76,724,854 134,086,293

3. The Maharashtra Government had issued a notification on August 30,2005, as per which entities leasing copyrights of cinematographic films are required to pay value added tax (VAT) @ 4% retrospectively wef May 1,2000. Subsequently, upon the representation of The Cinematograph Exhibitor's Association of India' (The Association'), the levy of the said tax was waived for the period May 1,2000 to March 31, 2005. The revised notification extending similar relief up to the period commencing from April 1, 2005 is being pursued by the association. The Company, in line with the view taken by the Industry, is of the opinion that VAT is not applicable to the activities carried by the Company and has also taken a legal opinion in this regard. The Company has also not received any demand notice from the VAT authorities. As a matter of prudence, the Company has made ad hoc payments of Rs. 1,500,000 under protest, which is disclosed under 'Loans and Advances'. Having regard to the above facts, the Company does not expect any liability on this account.

4. Previous the year the Company has allotted 2367 (Two Thousand Six Hundred Sixty Seven Only) Optionally Convertible Redeemable Bonds of the Face Value of Rs. 1,00,000 each (Rupees One Lakh Only) to 'M/s. Global Trade Finance Limited', for an aggregate sum of Rs. 23,67,00,000 (Rupees Twenty Three Crore Sixty Seven Lac Only) on 29* January, 2010 against their settlement of the amount borrowed by the Company from the said Financial Institution and still the option is not exercised.

5. Share application money, pending allotment of Rs. 114,158,764 (previous year Rs. 114,158,764) represents money received against offer for allotment of redeemable cumulative non-convertible preference shares of Rs.10 each. These are redeemable at par on or before 5 years, at the option of the Company.

6. In Previous Financial Year Company has redeem 5% Redeemable Cumulative Non- Convertible Preference Shares of Rs.10/- each amounting to Rs. 3,84,05,240/- (Rupees Three Crores Eighty Four Lacs Five Thousand Two Hundred Forty Only) along with the right to accrued interest thereon. However the amount against the said redemption is due and payable till the conclusion of our audit and disclosed as creditors under the Current Liabilities in the Balance Sheet.

7. Balances in respect of certain sundry debtors, sundry creditors and loans and advances are taken as shown by the books of account and are subject to confirmation and consequent adjustments and reconciliation, if any.

8. As per Management opinion Current assets, loans and advances have a value on realization which in the ordinary course of the business would not be less than the amount at which they are stated in the balance sheet and the provisions for all known and determined liabilities are adequate and not in excess of the amount reasonably required.

9. Related Party Disclosures

Related parties are classified as:

I Wholly Owned Subsidiaries:

1. K Sera Sera Productions FZE

2. K Sera Sera Box Office Private Limited

3. K Sera Sera Digital Cinema Private Limited

4. K Sera Sera Miniplex Private Limited

5. K Sera Sear Consultancy Pvt. Ltd.

6. K Kampus Education Pvt. Ltd.

II Key managerial personnel

1. Mr. Sanjay B. Lai

19. Leases

a. Finance Lease

During the year the company has not acquired any assets on hire purchase, the fair value of which is Rs. Nil (Previous year Rs. NIL). Further the company has surrender the Assets to the Banks / Parties, accordingly the capital value and the corresponding liability has been reduced to Nil as disclosed under Schedules of Fixed assets / Secured Loans attached to the Balance Sheet. The details of installments payable in future are as follows:

b. Operating Lease

The Company's leasing arrangements are in respect of the office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under 'Administrative and Other expenses' in Schedule 'Q'.

10. Segment Information

Business segments

Based on similarity of activities / products, risk and reward structure, organization structure and internal reporting systems, the Company has structured its operations into the following segments

i. In-house production and distribution of motion pictures

ii. Distribution of motion pictures produced by third parties

iii. Television content production

Segment revenue and expenses include amounts, which can be directly identified to the segment and are allocable on a reasonable basis. Segment assets include all operating assets used by the segment and consist primarily of inventories, debtors and loans and advances. Segment liabilities include all operating liabilities and consist primarily of creditors, advances and deposits from customers.

Geographic segment

Operations of the Company do not qualify, for reporting as geographic segments, under the criteria set out under Accounting Standard 17 on 'Segment reporting' issued by The Institute of Chartered Accountants of India.

11. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. NIL (Previous year Rs. NIL).

12. Information with regard to other matters specified in Part II of schedule VI to the Companies Act, 1956 is either nil or not applicable to the Company for the year.

13. There are no amounts due for transfer to the Investors Education and Protection Fund as at March 31,2011

14. The Company did not have any transactions with Small Scale Industrial ('SME's') Undertakings during the year ended March 31, 2011 and hence there are no amounts due to such undertakings. The identification of SME's undertakings is based on the management's knowledge of their status.

The Company has not received any information from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amount unpaid as at the year end together with interest paid / payable as required under the said Act have not been furnished.

15. Figures in brackets represent those of the previous year.

16. Figures for the previous year have been regrouped / amended wherever necessary.


Mar 31, 2010

1. Background

K Sera Sera Productions Limited (K Sera Sera or the Company) was incorporated on September 6, 1995. In the year 2002, the object clause was altered to carry on the business of entertainment through in-house production of motion pictures, television serials and distribution of films produced by third parties.

2. Contingent liabilities not provided for in respect of:

(Amount in Rupees)

Particulars March 31, 2010 March 31,2009

Guarantees issued by bank NIL NIL -In respect of the Company

- In respect of a wholly 16,039,756 16,039,756 owned subsidiary

Arrears of cumulative 5,760,792 5,760,792 redeemable preference dividend

Claims against Company 112,285,745 545,830,000 not acknowledged as debts and contested by the company.

Total 134,086,293 567,630,548

3. The Maharashtra Government had issued a notification on August 30,2005, as per which entities leasing copyrights of cinematographic films are required to pay value added tax (VAT) @ 4% retrospectively wef May 1,2000. Subsequently, upon the representation of The Cinematograph Exhibitors Association of India (The Association), the levy of the said tax was waived for the period May 1,2000 to March 31,2005. The revised notification extending similar relief up to the period commencing from April 1, 2005 is being pursued by the association. The Company, in line with the viewtaken by the Industry, is of the opinion that VAT is not applicable to the activities carried by the Company and has also taken a legal opinion in this regard. The Company has also not received any demand notice from the VAT authorities. As a matter of prudence, the Company has made ad hoc payments of Rs 1,500,000 under protest, which is disclosed under Loans and Advances. Having regard to the above facts, the Company does not expect any liability on this account.

4 During the financial year 2007-08, the Company was subjected to a search under Section 132 of the Income Tax Act 1961. During the course of the search, Income tax authorities have taken custody of certain documents/ records and recorded statements of certain officials of the Company. Company Appeal against Demand notice under section 156 issued by the Income Tax Authorities hence tax liability, if any, that may arise, on this account, which is presently unascertainable, will be recognized upon conclusion of tax assessments.

5. During the yearthe Company has allotted 2367 (Two Thousand Six Hundred Sixty Seven Only) Optionally Convertible Redeemable Bonds of the Face Value of Rs. 1,00,000 each (Rupees One Lakh Only) to M/s. Global Trade Finance Limited, for an aggregate sum of Rs. 23,67,00,000 (Rupees Twenty Three Crore Sixty Seven Lac Only) on 29th January, 2010 against their part settlement of the amount borrowed by the Company from the said Financial Institution.

6. Share application money, pending allotment of Rs.114,158,764 (previous year Rs. 114,158,764) represents money received against offerfor allotment of redeemable cumulative non-convertible preference shares of Rs.10 each. These are redeemable at par on or before 5 years, at the option of the Company.

7 In Previous Financial Year Company has redeem 38,40,524 (Thirty Eia company d Five Hundred Twenty FourOnly) The most diversified ible Preference Shares of Rs.10/- each amounting to Rs. 3,84,05,240/- (Rupees Three Crores Eighty Four Lacs Five Thousand Two Hundred Forty Only) along with the right to accrued interest thereon. The said redemption is made as perthe provisions of the Companies Act, 1956 and other provisions applicable, However the amount against the said redemption is due and payable till the conclusion of our audit and disclosed as creditors under the Current Liabilities in the Balance Sheet.

8. Balances in respect of certain sundry debtors, sundry creditors and loans and advances are taken as shown by the books of account and are subject to confirmation and consequent adjustments and reconciliation, if any.

9. As per Management opinion Current assets, loans and advances have a value on realization which in the ordinary course of the business would not be less than the amount at which they are stated in the balance sheet and the provisions for all known and determined liabilities are adequate and not in excess of the amount reasonably required.

10. Leases

a. Finance Lease

During the year the company has not acquired any assets on hire purchase, the fair value of which is Rs. Nil (Previous year Rs. NIL). Further the company has surrender the Assets to the Banks / Parties, accordingly the capital value and the corresponding liability has been reduced to Nil as disclosed under Schedules of Fixed assets / Secured Loans attached to the Balance Sheet. The details of installments payable in future are as follows:

11. Segment Information

Business segments

Based on similarity of activities / products, risk and reward structure, organization structure and internal reporting systems, the Company has structured its operations into the following segments

i. In-house production and distribution of motion pictures ii. Distribution of motion pictures produced by third parties iii. Television content production

Segment revenue and expenses include amounts, which can be directly identified to the segment and are allocable on a reasonable basis. Segment assets include all operating assets used by the segment and consist primarily of inventories, debtors and loans and advances. Segment liabilities include all operating liabilities and consist primarily of creditors, advances and deposits from customers.

12. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances) Rs. NIL (Previous year Rs. NIL).

13. Information with regard to other matters specified in Part II of schedule VI to the Companies Act, 1956 is either nil or not applicable to the Company for the year.

14. There are no amounts due for transferto the Investors Education and Protection Fund as at March 31,2010

15. The Company did not have any transactions with Small Scale Industrial (SMEs) Undertakings during the year ended March 31,2010 and hence there are no amounts due to such undertakings. The identification of SMEs undertakings is based on the managements knowledge of their status.

The Company has not received any information from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amount unpaid as at the year end togetherwith interest paid / payable as required under the said Act have not been furnished.

16. Figures in brackets represent those of the previous year.

17. Figures forthe previous year have been regrouped / amended wherever necessary.

 
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