Accounting Policies of Media Matrix Worldwide Ltd. Company
Mar 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.
4.1 Non-Current Assets Held for Sale
Non-current assets are classified as assets-held-for sale when their carrying amount is to be recovered principally
through a sale transaction and a sale is considered highly probable. The sale is considered highly probable only when
the asset is available for immediate sale in its present condition, it is unlikely that the sale will be withdrawn and sale
is expected within one year from the date of the classification. Assets classified as held for sale are stated at the lower
of carrying amount and fair value less costs to sell.
Assets classified as held for sale are presented separately in the balance sheet.
Loss is recognised for any initial or subsequent write -down of the asset to fair value less costs to sell. A gain
is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any
cumulative loss previously recognised.
4.2 Property, Plant and Equipment (âPPE'')
An item is recognised as an asset, if and only if, it is probable that the future economic benefits associated with the
item will flow to the Company and its cost can be measured reliably. PPE are stated at actual cost less accumulated
depreciation and impairment loss, if any. Actual cost is inclusive of freight, installation cost, duties, taxes and other
incidental expenses for bringing the asset to its working conditions for its intended use (net of tax credit, if any)
and any cost directly attributable to bring the asset into the location and condition necessary for it to be capable of
operating in the manner intended by the Management. It includes professional fees and borrowing costs for qualifying
assets.
Property, Plant and Equipment and intangible assets are not depreciated or amortized once classified as held for
sale.
Significant Parts of an item of PPE (including major inspections) having different useful lives & material value or other
factors are accounted for as separate components. All other repairs and maintenance costs are recognized in the
statement of profit and loss as incurred.
Depreciation of these PPE commences when the assets are ready for their intended use. The estimated useful
lives and residual values are reviewed on an annual basis and if necessary, changes in estimates are accounted for
prospectively. Depreciation on subsequent expenditure on PPE arising on account of capital improvement or other
factors is provided for prospectively over the remaining useful life.
Depreciation is provided pro-rata to the period of use on the straight-line method based on the estimated useful life
of the assets. The residual values are not more than 5% of the original cost of the assets. The useful life of property,
plant and equipment are as follows:
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset
will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original
cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative impairment. Administrative
and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated
and capitalised as a part of the cost of the intangible assets.
De-recognition of intangible assets
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or
disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the
net disposal proceeds and the carrying amount of the asset, and are recognized in the Statement of Profit and Loss
when the asset is derecognized.
Amortization: Intangible assets are amortised on straight line basis over a period ranging between 2-5 years which
equates its economic useful life.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. The financial instruments are recognised in the balance sheet when the Company
becomes a party to the contractual provisions of the financial instrument. The Company determines the classification
of its financial instruments at initial recognition.
Financial AssetsInitial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or
sales of financial assets that require delivery of assets within a time frame are recognized on the trade date, i.e., the
date that the Company commits to purchase or sell the asset.
For purposes of subsequent measurement, financial assets are classified in following categories based on business
model of the entity:
⢠Debt instruments at amortized cost.
⢠Debt instruments at fair value through other comprehensive income (FVTOCI).
⢠Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL).
⢠Equity instruments measured at fair value through other comprehensive income (FVTOCI).
Debt instruments at amortized cost
A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method.
A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the
financial assets, and
b) The asset''s contractual cash flows represent SPPI
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at
fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company
recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the P&L. On
derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to
P&L. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.
Any debt instrument, that does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified
as at FVTPL.
In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI
criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement
or recognition inconsistency (referred to as ''accounting mismatch''). The Company has not designated any debt
instrument as at FVTPL.
Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the
P&L.
Equity investments (Other than investment in subsidiary)
All other equity investments are measured at fair value. For Equity instruments, the Company may make an irrevocable
election to present in other comprehensive income subsequent changes in the fair value. The Company makes such
election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. This amount is not recycled from OCI to P&L, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within equity.
Financial assets are measured at fair value through profit or loss unless they are measured at amortised cost or
at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable
to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in
Statement of Profit and Loss.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the
Statement of Profit and Loss.
Investments in mutual funds are measured at fair value through profit or loss (FVTPL).
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of
cash that are subject to an insignificant risk of change in value and having original maturities of three months or less
from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which
are unrestricted for withdrawal and usage.
A financial asset is de-recognized only when
⢠The Company has transferred the rights to receive cash flows from the financial asset or
⢠retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients.
Where the Company has transferred an asset, it evaluates whether it has transferred substantially all risks and
rewards of ownership of the financial asset. In such cases, the financial asset is de-recognized.
Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is de-recognised if the Company has not retained control of the
financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to
the extent of continuing involvement in the financial asset.
Impairment of financial assets
The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is
impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. In determining the
allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected
credit loss allowance for trade receivables based on a provision matrix. The provision matrix considers historical
credit loss experience and is adjusted for forward looking information. For all other financial assets, expected credit
losses are measured at an amount equal to the 12-months expected credit losses or at an amount equal to the life
time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the
statement of profit and loss (P&L).
Financial liabilities and equity instruments issued by the company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Initial recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair
value through profit and loss.
Financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial
liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised
in the statement of profit and loss.
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
period which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due
within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured
at amortised cost using the effective interest method.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using
the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as
through the EIR amortization process.
Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that
are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the
amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less
cumulative amortisation.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
a) Basis of valuation:
i. Inventories other than scrap materials are valued at lower of cost and net realizable value after
providing cost of Obsolescence, if any.
ii. Inventory of scrap materials have been valued at net realizable value.
b) The Cost is determined using FIFO basis.
c) Net realizable value is the estimated selling price in the ordinary course of business, less estimated
costs necessary to make the sale.
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying asset are
capitalized as part of cost of such asset. Other borrowing costs are recognized as an expense in the period in which
they are incurred.
Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of funds.
4.7 Impairment of Non-Financial Assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s
recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair
value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or group of assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and
is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent market transactions are considered. If no such transactions
can be identified, an appropriate valuation model is used. Impairment losses of continuing operations, including
impairment on inventories, are recognized in the statement of profit and loss.
A previously recognized impairment loss (except for goodwill) is reversed only if there has been a change in the
assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognized. The
reversal is limited to the carrying amount of the asset.
The Company recognizes revenue in accordance with Ind- AS 115. Revenue is recognized upon transfer of control of
promised products or services to customers in an amount that reflects the consideration that the Company expects
to receive in exchange for those products or services.
Revenues in excess of invoicing are classified as contract assets (which may also refer as unbilled revenue) while
invoicing in excess of revenues are classified as contract liabilities (which may also refer to as unearned revenues).
The specific recognition criteria from various stream of revenue is described below:
(i) Revenue from Services is recognized when respective service is rendered and accepted by the customer
(i.e. when performance obligation is satisfied) at the amount of transaction price (net of variable consideration)
allocated to that performance obligation. The transaction price of services rendered is net of, returns and
allowances, trade discounts and volume rebates offered by the Company as part of the contract.
(ii) Insurance claims are accounted for as and when admitted by the concerned authority.
(iii) Interest Income: For all debt instruments measured either at amortized cost or at fair value through other
comprehensive income, interest income is recorded using the effective interest rate (EIR).
(iv) Dividend Income: Dividend income on investments is recognised when the right to receive dividend is
established.
(v) Other Income: Other Income is accounted for on accrual basis except, where the receipt of income is uncertain.
(vi) Revenue are recognised net of the Goods and Services Tax/Service Tax, wherever applicable.
4.9 Foreign Currency Transactions
The functional currency of the Company is Indian Rupees which represents the currency of the economic environment
in which it operates.
Transactions in currencies other than the Company''s functional currency are recognized at the rates of exchange
prevailing at the dates of the transactions. Monetary items denominated in foreign currency at the year end and not
covered under forward exchange contracts are translated at the functional currency spot rate of exchange at the
reporting date.
Any income or expense on account of exchange difference between the date of transaction and on settlement or on
translation is recognized in the profit and loss account as income or expense.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was determined. Translation difference on such assets and liabilities carried at fair value
are reported as part of fair value gain or loss.
In case of forward exchange contracts, the premium or discount arising at the inception of such contracts is amortized
as income or expense over the life of the contract. Further exchange difference on such contracts i.e. difference
between the exchange rate at the reporting /settlement date and the exchange rate on the date of inception of
contract/the last reporting date, is recognized as income/expense for the period.
The Company has adoptedAppendix B to IndAS 21-Foreign CurrencyTransactions andAdvance Consideration(Effective
April 1,2018 ) which clarifies the date of transaction for the purpose of determining the exchange rate to use on initial
recognition of the related asset, expense or income when an entity has received or paid advance consideration in a
foreign currency. The effect on account of adoption of this amendment was insignificant.
4.10 Employees BenefitsShort term employee benefits: -
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognized in respect of
employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
Compensated expenses which are not expected to occur within twelve months after the end of period in which
the employee renders the related services are recognized as a liability at the present value of the defined benefit
obligation at the balance sheet date.
Post-employment obligationsi. Defined contribution plans
Provident Fund and employees'' state insurance schemes
All employees of the Company are entitled to receive benefits under the Provident Fund, which is a
defined contribution plan. Both the employee and the employer make monthly contributions to the plan at
a predetermined rate (presently 12%) of the employees'' basic salary. These contributions are made to the
fund administered and managed by the Government of India. In addition, some employees of the Company
are covered under the employees'' state insurance schemes, which are also defined contribution schemes
recognized and administered by the Government of India.
The Company''s contributions to both these schemes are expensed in the Statement of Profit and Loss. The
Company has no further obligations under these plans beyond its monthly contributions.
ii. Defined benefit plans
Gratuity
The Company provides for gratuity obligations through a defined benefit retirement plan (the ''Gratuity Plan'')
covering all employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement
or termination of employment based on the respective employee salary and years of employment with the
Company. The Company provides for the Gratuity Plan based on actuarial valuations in accordance with Indian
Accounting Standard 19 (revised), âEmployee Benefits â. The present value of obligation under gratuity is
determined based on actuarial valuation using Project Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to
build up the final obligation.
Defined retirement benefit plans comprising of gratuity, un-availed leave, post-retirement medical benefits
and other terminal benefits, are recognized based on the present value of defined benefit obligation which is
computed using the projected unit credit method, with actuarial valuations being carried out at the end of each
annual reporting period. These are accounted either as current employee cost or included in cost of assets as
permitted.
The Company has provided for the liability at period end on account of un-availed earned leave as per the
actuarial valuation as per the Projected Unit Credit Method.
iii. Actuarial gains and losses are recognized in OCI as and when incurred.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement
of profit and loss.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if
applicable) and the return on plan assets (excluding net interest as defined above),are recognized in other
comprehensive income except those included in cost of assets as permitted in the period in which they occur
and are not subsequently reclassified to profit or loss.
The retirement benefit obligation recognized in the Financial Statements represents the actual deficit or surplus
in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value
of any economic benefits available in the form of reductions in future contributions to the plans.
Termination benefits are recognized as an expense in the period in which they are incurred.
4.11 Investments in subsidiaries, associates and joint ventures
The Company records the investments in subsidiaries, associates and joint ventures at cost less accumulated
impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed
and written down immediately to its recoverable amount.
When the Company issues financial guarantees on behalf of subsidiaries, initially it measures the financial guarantees
at their fair values and subsequently measures at the higher of the amount of loss allowance determined as per
impairment requirements of Ind AS 109 and the amount recognized less cumulative amortization.
The Company records the initial fair value of financial guarantee as deemed investment with a corresponding liability
recorded as deferred revenue. Such deemed investment is added to the carrying amount of investment in subsidiaries
Deferred revenue is recognized in the Statement of Profit and Loss over the remaining period of financial guarantee
issued.
The Company reviews its carrying value of investments carried at cost (net of impairment, if any) annually, or more
frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the
impairment loss is accounted for in the statement of profit and loss.
The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on
the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses, if any.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end
of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis
of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the Standalone Financial Statement. However, deferred
tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also
not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred
income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of
the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred
income tax liability is settled.
The carrying amount of deferred tax assets are reviewed at the end of each reporting period and are recognized only
if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.
Deferred tax liabilities are not recognized for temporary differences between the carrying amount and tax bases
of investments in subsidiaries, where the Company is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets are not recognized for temporary differences between the carrying amount and tax bases of
investments in subsidiaries, associates and interest in joint arrangements where it is not probable that the differences
will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference
can be utilized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis,
or to realize the asset and settle the liability simultaneously.
As a lessee
The Company''s lease asset classes primarily consist of leases for land and buildings. The Company assesses
whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
i. the contract involves the use of an identified asset
ii. the Company has substantially all of the economic benefits from use of the asset through the period of the
lease and
iii. the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (âROUâ) and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the
lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any
lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever
events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset does not generate cash flows that are largely independent
of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU)
to which the asset belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The
lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will
exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been
classified as financing cash flows.
As a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the
lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance
lease. All other leases are classified as operating leases.
When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease
separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising
from the head lease.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have
a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies
the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments
on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the
lease term.
The Company presents the Basic and Diluted EPS data. Basic earnings per share are computed by dividing the net
profit after tax by the weighted average number of equity shares out standing during the period. Diluted earnings
per share is computed by dividing the profit after tax by the weighted average number of equity shares considered
for deriving basic earnings per share and also the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.
4.15 Segment Reporting
Identification of segments:
Operating segments are reported in a manner consistent with the internal financial reporting provided to the Chief
Operating Decision Maker (CODM) i.e. Board of Directors. CODM monitors the operating results of all product
segments separately for the purpose of making decisions about resource allocation and performance assessment.
Segment performance is evaluated based on profit and loss and is measured consistently with profit and loss in the
financial statements. The primary reporting of the Company has been performed on the basis of business segments.
The analysis of geographical segments is based on the areas in which the Company''s products are sold or services
are rendered.
Common allocable costs are allocated to each segment according to the relative contribution of each segment to the
total common costs.
The Corporate and other segment include general corporate income and expense items, which are not allocated to
any business segment.
Mar 31, 2021
1. Background of the Company
A. Media Matrix Worldwide Limited (''MMWL'' or ''the Company''), a Public Limited Company, was incorporated on June 07, 1985 in the State of Maharashtra. MMWL made its maiden public issue of Equity Shares in the year 1985 and got its Equity Shares listed at the Bombay Stock Exchange Ltd, Mumbai (BSE). As of March 31, 2021, Company has been doing business of digital media content and dealing in related activities in media and entertainment industry. In order to venture into new business activities viz. defence, Railways, Telecom and electronics, the Company has amended its main object clause of the Memorandum of Association of the Company by seeking shareholders'' approval through postal ballot on 1st February, 2017. The aforesaid amendments in the objects have already been approved by the Registrar of Companies, Mumbai.
B. The Company was incorporated as Rahul Trading and Finance Limited on 7th June, 1985 and was originally engaged in trading activities and later on, it changed its name to Giltfin Lease Limited. It obtained registration from Reserve Bank of India for carrying out Non-Banking Finance Company (NBFC) activities in the year 1999 vide certificate of Registration No. 13.01287 dated 13th August 1999. However, the Company didn''t carry out any activities related to NBFC since 13th August, 1999, the date on which it got the NBFC certificate, but only continues to be registered with Reserve Bank of India (RBI) as a Non-deposit accepting Non-Banking Finance Company. In the Year 2000, the Company started media and content business and further changed its name to Media Matrix Worldwide Limited. Considering that the Company had neither carried out any NBFC business in the past, nor it has any intention to carry the business of NBFC in future, the Company, on September 13, 2011, submitted an application to RBI for deregistration as an NBFC. RBI has vide its letter dated December 26, 2012 has asked the Company to lower its financials assets (representing investment in subsidiaries) as percentage of total assets to enable it to deregister as NBFC. Since the Company presently does not meet the criteria of principal business as specified by the RBI in its Press Release 1998-99/1269 dated April 8, 1999 and instead qualifies the criteria of Core Investment Company (CIC) based on its current investment structure, the Company has notified the same to RBI vide letter dated April 20, 2013. The Company qualifies for exemption from registration as CIC and has applied for the same to RBI. Simultaneously, Company has applied for de registration as NBFC, however, as per the extant guidelines of RBI, the Company shall continue as NBFC till time it reduces its strategic investments below 50% of total assets to qualify for deregistration and would continue to do compliance of NBFC as applicable.
C. During FY2012-2013, the Company came out with issue of 90,77,85,000 equity shares with a face value of Re.1/-each at a premium of Rs. 0.20 per equity share for an amount aggregating Rs.108,93,42,000 on a rights basis to the equity shareholders of the Company in the ratio of 9 equity shares for every 1 fully paid-up equity share held by the equity shareholders on the record date, that is, on March 19, 2013. The right issue opened on March 30, 2013 and closed on April 27, 2013. Till March 31st, 2016, the Company has utilized the amount of Rs.1,089,342,000/- for the objects of the issue as stated in the Letter of Offer.
A. On March 24, 2021, the Ministry of Corporate Affairs (MCA) through a notification, amended Schedule III of the Companies Act, 2013. The amendments revise Division I, II and III of Schedule III and are applicable from April 1, 2021. The Company is evaluating the effect of the amendments on its financial statements.
B. Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards. There is no such notification which would have been applicable from April 1, 2021
3. Basis of Preparation of Financial Statements3.1. Compliance with Ind AS
These financial statements (''financial statements'') have been prepared in accordance with the Indian Accounting Standard (''Ind AS'') notified under section 133 of the Companies Act, 2013, read together with Rule 3 of the Companies (Indian Accounting Standards) Rules as amended from time to time.
The accounting policies, as set out in the following paragraphs of this note, have been consistently applied, by the Company, to all the periods presented in the said financial statements. The preparation of the said financial statements requires the use of certain critical accounting estimates and judgements. It also requires the management to exercise judgement in the process of applying the Company''s accounting policies. The areas where estimates are significant to the financial statements, or areas involving a higher degree of judgement or complexity, are disclosed in Note 26.
These financial statements have been presented in accordance with the format prescribed for Non-Banking Finance Companies under the Companies (Indian Accounting Standards) Rules, 2015, in Division III of Schedule III as per Notification no. GSR. 1022 (E) dated 11th October 2018, issued by Ministry of Corporate Affairs, Government of India.
Further, for the purpose of clarity, various items are aggregated in the statement of profit and loss and balance sheet. Nonetheless, these items are dis-aggregated separately in the notes to the financial statements, where applicable or required. All the amounts included in the financial statements are reported in Indian Rupees (''Rupees'') and are rounded to the nearest rupees except per share data and unless stated otherwise.
3.2 Historical Cost Convention
The financial statements have been prepared on the accrual and going concern basis, and the historical cost convention except where the Ind AS requires a different accounting treatment. The principal variations from the historical cost convention relate to financial instruments classified as fair value for the followings:
(a) certain financial assets and liabilities and contingent consideration that is measured at fair value;
(b) assets held for sale measured at fair value less cost to sell;
(c) defined benefit plans plan assets measured at fair value, and
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services
3.3 Use of estimates and judgements
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and judgements that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected.
The Company measures financial instruments, such as, derivatives at fair value at each Balance Sheet date. Fair value is the price that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date.
A fair value measurement of a non financial asset takes into account a market participant'' ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
The Company categorizes assets and liabilities measured at fair value into one of three levels as follows:
Level 1 - Quoted (unadjusted): This hierarchy includes financial instruments measured using quoted prices.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 - They are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants. Fair values are determined in whole or in part using valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
4. Summary of Significant Accounting Policies
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
4.1 Non-Current Assets Held for Sale
Non-current assets are classified as assets-held-for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. The sale is considered highly probable only when the asset is available for immediate sale in its present condition, it is unlikely that the sale will be withdrawn and sale
is expected within one year from the date of the classification. Assets classified as held for sale are stated at the lower of carrying amount and fair value less costs to sell.
Assets classified as held for sale are presented separately in the balance sheet.
Loss is recognised for any initial or subsequent write -down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative loss previously recognised.
4.2 Property, Plant and Equipment (âPPE'')
An item is recognised as an asset, if and only if, it is probable that the future economic benefits associated with the item will flow to the Company and its cost can be measured reliably. PPE are stated at actual cost less accumulated depreciation and impairment loss, if any. Actual cost is inclusive of freight, installation cost, duties, taxes and other incidental expenses for bringing the asset to its working conditions for its intended use (net of tax credit, if any) and any cost directly attributable to bring the asset into the location and condition necessary for it to be capable of operating in the manner intended by the Management. It includes professional fees and borrowing costs for qualifying assets.
Property, Plant and Equipment and intangible assets are not depreciated or amortized once classified as held for sale.
Significant Parts of an item of PPE (including major inspections) having different useful lives & material value or other factors are accounted for as separate components. All other repairs and maintenance costs are recognized in the statement of profit and loss as incurred.
Depreciation of these PPE commences when the assets are ready for their intended use. The estimated useful lives and residual values are reviewed on an annual basis and if necessary, changes in estimates are accounted for prospectively. Depreciation on subsequent expenditure on PPE arising on account of capital improvement or other factors is provided for prospectively over the remaining useful life.
Depreciation is provided pro-rata to the period of use on the straight-line method based on the estimated useful life of the assets. The useful life of property, plant and equipment are as follows:
|
Asset Class |
Useful Life |
|
Computers |
3 years |
|
Office Equipment |
5 years |
|
Furniture and Fixture |
10 years |
|
Fixed Assets costing less than Rs 5,000 |
Fully depreciated when they are ready for use. |
(a) Depreciation on the amount capitalized on up-gradation of the existing assets is provided over the balance life of the original asset.
(b) An item of PPE is de-recognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss.
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative impairment. Administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible assets.
De-recognition of intangible assets
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognized in the Statement of Profit and Loss when the asset is derecognized.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. The financial instruments are recognised in the balance sheet when the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial instruments at initial recognition.
Financial AssetsInitial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.
For purposes of subsequent measurement, financial assets are classified in following categories based on business model of the entity:
⢠Debt instruments at amortized cost.
⢠Debt instruments at fair value through other comprehensive income (FVTOCI).
⢠Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL).
⢠Equity instruments measured at fair value through other comprehensive income (FVTOCI).
Debt instruments at amortized cost
A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.
A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and
b) The asset''s contractual cash flows represent SPPI
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the P&L. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.
Any debt instrument, that does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting mismatch''). The Company has not designated any debt instrument as at FVTPL.
Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.
Equity investments (Other than investment in subsidiary)
All other equity investments are measured at fair value. For Equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. This amount is not recycled from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
Financial assets are measured at fair value through profit or loss unless they are measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in Statement of Profit and Loss.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
A financial asset is de-recognized only when
⢠The Company has transferred the rights to receive cash flows from the financial asset or retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.
⢠Where the Company has transferred an asset, it evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de-recognized.
Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.
Impairment of financial assets
The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix considers historical credit loss experience and is adjusted for forward looking information. For all other financial assets, expected credit losses are measured at an amount equal to the 12-months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss (P&L).
Financial liabilities and equity instruments issued by the company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Initial recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit and loss.
Financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the statement of profit and loss.
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial period which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortised cost using the effective interest method.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.
Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
4.5 Inventoriesa) Basis of valuation:
i. Inventories other than scrap materials are valued at lower of cost and net realizable value after providing cost of Obsolescence, if any.
ii. Inventory of scrap materials have been valued at net realizable value.
b) The Cost is determined using FIFO basis.
c) Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying asset are capitalized as part of cost of such asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.
Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of funds.
4.7 Impairment of Non-Financial Assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are considered. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement of profit and loss.
A previously recognized impairment loss (except for goodwill) is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognized. The reversal is limited to the carrying amount of the asset.
The Company recognizes revenue in accordance with Ind- AS 115. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration that the Company expects to receive in exchange for those products or services.
Revenues in excess of invoicing are classified as contract assets (which may also refer as unbilled revenue) while invoicing in excess of revenues are classified as contract liabilities (which may also refer to as unearned revenues).
The specific recognition criteria from various stream of revenue is described below:
(i) Revenue from Services is recognized when respective service is rendered and accepted by the customer. For all debt instruments measured either at amortized cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR).
(ii) Insurance claims are accounted for as and when admitted by the concerned authority.
(iii) Interest Income: For all debt instruments measured either at amortized cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR).
(iv) Revenue are recognised net of the Goods and Services Tax/Service Tax, wherever applicable.
4.9 Foreign Currency Transactions
The functional currency of the Company is Indian Rupees which represents the currency of the economic environment in which it operates.
Transactions in currencies other than the Company''s functional currency are recognized at the rates of exchange prevailing at the dates of the transactions. Monetary items denominated in foreign currency at the year end and not covered under forward exchange contracts are translated at the functional currency spot rate of exchange at the reporting date.
Any income or expense on account of exchange difference between the date of transaction and on settlement or on translation is recognized in the profit and loss account as income or expense.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation difference on such assets and liabilities carried at fair value are reported as part of fair value gain or loss.
In case of forward exchange contracts, the premium or discount arising at the inception of such contracts is amortized as income or expense over the life of the contract. Further exchange difference on such contracts i.e. difference between the exchange rate at the reporting /settlement date and the exchange rate on the date of inception of contract/the last reporting date, is recognized as income/expense for the period.
The Company has adopted Appendix B to Ind AS 21-Foreign Currency Transactions and Advance Consideration(Effective April 1, 2018 ) which clarifies the date of transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income when an entity has received or paid advance consideration in a foreign currency. The effect on account of adoption of this amendment was insignificant.
4.10 Employees BenefitsShort term employee benefits: -
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
Compensated expenses which are not expected to occur within twelve months after the end of period in which the employee renders the related services are recognized as a liability at the present value of the defined benefit obligation at the balance sheet date.
Post-employment obligations(i) Defined contribution plans
Provident Fund and employees'' state insurance schemes
All employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Both the employee and the employer make monthly contributions to the plan at a predetermined rate (presently 12%) of the employees'' basic salary. These contributions are made to the fund administered and managed by the Government of India. In addition, some employees of the Company are covered under the employees'' state insurance schemes, which are also defined contribution schemes recognized and administered by the Government of India.
The Company''s contributions to both these schemes are expensed in the Statement of Profit and Loss. The Company has no further obligations under these plans beyond its monthly contributions.
(ii) Defined benefit plans Gratuity
The Company provides for gratuity obligations through a defined benefit retirement plan (the ''Gratuity Plan'') covering all employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employee salary and years of employment with the Company. The Company provides for the Gratuity Plan based on actuarial valuations in accordance with Indian Accounting Standard 19 (revised), âEmployee Benefits â. The present value of obligation under gratuity is determined based on actuarial valuation using Project Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
Defined retirement benefit plans comprising of gratuity, un-availed leave, post-retirement medical benefits and other terminal benefits, are recognized based on the present value of defined benefit obligation which is computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted.
The Company has provided for the liability at period end on account of un-availed earned leave as per the actuarial valuation as per the Projected Unit Credit Method.
(iii) Actuarial gains and losses are recognized in OCI as and when incurred.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest as defined above),are recognized in other comprehensive income except those included in cost of assets as permitted in the period in which they occur and are not subsequently reclassified to profit or loss.
The retirement benefit obligation recognized in the Financial Statements represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of reductions in future contributions to the plans.
Termination benefits are recognized as an expense in the period in which they are incurred.
4.11 Investments in subsidiaries, associates and joint ventures
The Company records the investments in subsidiaries, associates and joint ventures at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount.
When the Company issues financial guarantees on behalf of subsidiaries, initially it measures the financial guarantees at their fair values and subsequently measures at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative amortization.
The Company records the initial fair value of financial guarantee as deemed investment with a corresponding liability recorded as deferred revenue. Such deemed investment is added to the carrying amount of investment in subsidiaries
Deferred revenue is recognized in the Statement of Profit and Loss over the remaining period of financial guarantee issued.
The Company reviews its carrying value of investments carried at cost (net of impairment, if any) annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for in the statement of profit and loss
The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses, if any.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Standalone Financial Statement. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
The carrying amount of deferred tax assets are reviewed at the end of each reporting period and are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.
Deferred tax liabilities are not recognized for temporary differences between the carrying amount and tax bases of investments in subsidiaries, where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets are not recognized for temporary differences between the carrying amount and tax bases of investments in subsidiaries, associates and interest in joint arrangements where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
As a lessee
The Company''s lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
i. the contract involves the use of an identified asset
ii. the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
iii. the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (âROUâ) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
As a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease. Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
The Company presents the Basic and Diluted EPS data. Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares out standing during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
4.15 Segment Reporting Identification of segments:
Operating segments are reported in a manner consistent with the internal financial reporting provided to the Chief Operating Decision Maker (CODM) i.e. Board of Directors. CODM monitors the operating results of all product segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss and is measured consistently with profit and loss in the financial statements. The primary reporting of the Company has been performed on the basis of business segments.
The analysis of geographical segments is based on the areas in which the Company''s products are sold or services are rendered.
Allocation of common costs:
Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.
The Corporate and other segment include general corporate income and expense items, which are not allocated to any business segment.
4.16 Provision, Contingent Liabilities & Contingent Assets
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
ARO are recognised for those operating lease arrangements where the Company has an obligation at the end of the lease period to restore the leased premises in a condition similar to inception of lease. ARO are provided at the present value of expected costs to settle the obligation and are recognised as part of the cost of that particular asset. The estimated future costs of decommissioning are reviewed annually and any changes in the estimated future costs or in the discount rate applied are adjusted from the cost of the asset.
Contingent liabilities are disclosed in the Financial Statements by way of notes to accounts, unless possibility of an outflow of resources embodying economic benefit is remote.
Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.
4.17 Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Exceptional items refer to items of income or expense within the statement of profit and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance of the Company.
Mar 31, 2018
NOTE-1: SIGNIFICANT ACCOUNTING POLICIES
A. Method of Accounting
The financial statements are prepared on the historical cost convention and in accordance with generally accepted accounting principles (âGAAPâ)
a) The Company follows accrual system of accounting in the preparation of accounts unless otherwise stated.
b) The preparation of the financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported accounts of income and expenses of the period, reported values of assets and liabilities as of date of the financial statements. Examples of such estimates include provisions for doubtful debts, provisions for doubtful loans and advances, provisions for diminution in value of investments, estimated period of utility of software package, provisions for value of obsolete/non-moving inventories etc. Actual results may differ from these estimates.
B. Revenue Recognition
a) Revenue is recognized on accrual basis.
b) Revenue from Services rendered is recognized as and when the services are performed.
c) Sale of goods is recognized on dispatch to the customers.
d) Insurance claims are accounted for as and when admitted by the concerned authorities
e) Interest income is recognized as and when accrued.
C. Securities Premium Account
Securities issue expenses and redemption premium payable on optionally or compulsorily convertible preference share or debentures has been adjusted against Securities Premium Account.
D. Fixed Assets
a) Owned Assets
Fixed Assets are stated at cost, which includes freight, installation cost, duties, taxes and other incidental expenses but net of CENVAT.
b) Capital Work-in-progress
All expenses incurred for acquiring, erecting and commissioning of fixed assets including interest on long term loans utilized for meeting capital expenditure and incidental expenditure incurred during construction of projects are shown under capital work-in-progress and are allocated to the fixed assets on the completion of the respective projects.
c) Intangible Assets
Cost of software and expenses on development of new products are accounted for as intangible assets.
E. Lease
a) Fixed assets acquired on lease / hire purchase for an agreed period has been recognized as an asset and liability. Such recognition is at an amount equal to the fair value of leased asset at the inception of lease or present value of minimum lease payment, whichever is less.
b) Lease payment is apportioned between finance charge and reductions of the outstanding liability
c) Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating leases payments are recognized as an expense in the statement of profit & loss or on a basis, which reflect the time pattern of such payments appropriately.
F. Depreciation and Amortization
a) Depreciation is provided for all the assets on straight line method, on the basis of useful life specified in the Schedule II of the Companies Act, 2013.
b) Depreciation due to increase or decrease in the liability on account of exchange fluctuation or on account of rollover charges on forward exchange contract is provided prospectively over the residual life of the assets.
c) Intangible assets are amortized over a period of five years or life of product considered at the end of each financial year whichever is earlier. Amortization commences when the asset is available for use.
Gl Impairment of Assets
The fixed assets or group of assets (cash generating unit) are reviewed for impairment at each Balance Sheet date. In case of such any indication, the recoverable amount of these assets or group of assets is determined and if such recoverable amount of the assets or cash generating unit to which the assets belong is less than its carrying amount, the impairment loss is recognized by writing down such assets to their recoverable amount. An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased.
H. Investments
a) The cost of an investment includes incidental expenses like brokerage, fess and duties incurred prior to acquisition.
b) Non-current investments are carried at cost. Provision for diminution in value is made to recognize a decline other than temporary.
c) Investments which are intended to be held for less than one year are classified as current investments and are carried at lower of cost and fair value determined on an individual investment basis.
d) Advance against share application money are classified under the head âInvestmentsâ.
I. Inventories
Inventories are valued at lower of cost or net realizable value. Cost is determined on FIFO basis.
J. Foreign Currency Transactions
a) Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of the transactions.
b) Monetary items denominated in foreign currency at the year end and not covered under forward exchange contracts are translated at the yearend rates.
c) Any income or expense on account of exchange difference between the date of transactions and on settlement or on translation is recognized in the statement of profit and loss as income or expense.
K. Employees Retirement Benefits
The relevant policies for âEmployee Benefitsâ in accordance with Revised Accounting Standard - 15 are as under:
Short Term Employee Benefits
Short term employee benefits are recognized in the period during which the services have been rendered.
Long Term Employee Benefits
a) Defined Contribution plan
Provident Fund and employeesâ state insurance schemes
- All employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Both the employee and the employer make monthly contributions to the plan at a predetermined rate (presently 12%) of the employeesâ basic salary.
- The Companyâs contributions to both these schemes are expensed in the statement of Profit and Loss.
b) Defined Benefit Plan
(i) Gratuity
- The Company provides for gratuity obligations through a defined benefit retirement plan (the âGratuity Planâ) covering all employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employee salary and years of employment with the Company. The Company provides for the Gratuity Plan based on actuarial valuations in accordance with Accounting Standard 15 (revised), âEmployee Benefitsâ. The present value of obligation under gratuity is determined based on actuarial valuation using Project Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
(ii) Leave Encashment
- The Company has provided for the liability at period end on account of unavailed earned leave as per the actuarial valuation as per the Projected Unit Credit Method.
(iii) Actuarial gains and losses are recognized as and when incurred.
L. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of the qualifying assets, if any, are capitalized as a part of cost of such asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.
M. Income Tax
Tax expense comprises both current and deferred taxes. Current tax is provided for on the taxable profits of the year at applicable tax rates. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income for the year and reversal of timing difference of earlier years.
Deferred Tax is measured based on the tax rates and tax laws enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that sufficient future taxable income will be available against which deferred tax assets can be realized. Unrecognized deferred tax assets of the earlier years are re-assessed and recognized to the extent it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.
N. Earnings Per Share
In determining earning per share, the company considers the net profits after tax and includes the post tax effects of any extra- ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.
O. SEGMENT REPORTING
Segments are identified in line with theAccounting Standard on Segment Reporting (AS-17) taking into account the organization structure as well as the differential risk and returns of the segments. The un-allocable items include income and expenses items which are not directly identifiable to any segment and therefore not allocated to any business segment.
P. Provision, Contingent Liabilities & Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is provable that there will be an out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the Financial Statements.
Q. Cash and Cash Equivalents
Cash comprises Cash on hand and demand deposits with banks. Cash equivalents are short term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
Mar 31, 2016
A. Method of Accounting
The financial statements are prepared on the historical cost convention
and in accordance with generally accepted accounting principles
(''GAAP'')
a) The Company follows accrual system of accounting in the preparation
of accounts unless otherwise stated.
b) The preparation of the financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported accounts of income and expenses of
the period, reported values of assets and liabilities as of date of the
financial statements. Examples of such estimates include provisions for
doubtful debts, provisions for doubtful loans and advances, provisions
for diminution in value of investments, estimated period of utility of
software package, provisions for value of obsolete/non-moving
inventories etc. Actual results may differ from these estimates.
B. Revenue Recognition
a) Revenue is recognized on accrual basis.
b) Revenue from Services rendered is recognized as and when the
services are performed.
c) Sale of goods is recognized on dispatch to the customer.
d) Insurance claims are accounted for as and when admitted by the
concerned authority.
e) Interest income is recognized as and when accrued.
C. Securities Premium Account
Securities issue expenses and redemption premium payable on optionally
or compulsorily convertible preference share or debentures has been
adjusted against Securities Premium Account.
D. Fixed Assets
a) Owned Assets
Fixed Assets are stated at cost, which includes freight, installation
cost, duties, taxes and other incidental expenses but net of CENVAT.
b) Capital Work-in-progress
All expenses incurred for acquiring, erecting and commissioning of
fixed assets including interest on long term loans utilized for meeting
capital expenditure and incidental expenditure incurred during
construction of projects are shown under capital work-in-progress and
are allocated to the fixed assets on the completion of the respective
projects.
c) Intangible Assets
Cost of software and expenses on development of new products are
accounted for as intangible assets.
E. Lease
a) Fixed assets acquired on lease / hire purchase for an agreed period
has been recognized as an asset and liability. Such recognition is at
an amount equal to the fair value of leased asset at the inception of
lease or present value of minimum lease payment, whichever is less.
b) Lease payment is apportioned between finance charge and reductions
of the outstanding liability.
c) Leases where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items are classified as
operating leases. Operating leases payments are recognized as an
expense in the statement of profit & loss or on a basis, which reflect
the time pattern of such payments appropriately.
F. Depreciation and Amortization
a) Depreciation is provided for all the assets on straight line method,
on the basis of useful life specified in the Schedule II of the
Companies Act, 2013.
b) Depreciation due to increase or decrease in the liability on account
of exchange fluctuation or on account of rollover charges on forward
exchange contract is provided prospectively over the residual life of
the assets.
c) Intangible assets are amortized over a period of five years or life
of product considered at the end of each financial year whichever is
earlier. Amortization commences when the asset is available for use.
G. Impairment of Assets
The fixed assets or group of assets (cash generating unit) are reviewed
for impairment at each Balance Sheet date. In case of such any
indication, the recoverable amount of these assets or group of assets
is determined and if such recoverable amount of the assets or cash
generating unit to which the assets belong is less than its carrying
amount, the impairment loss is recognized by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased.
H. Investments
a) The cost of an investment includes incidental expenses like
brokerage, fees and duties incurred prior to acquisition.
b) Non-current investments are carried at cost. Provision for
diminution in value is made to recognize a decline other than
temporary.
c) Investments which are intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
fair value determined on an individual investment basis.
d) Advance against share application money are classified under the
head "Investments".
I. Inventories
- Inventories are valued at lower of cost or net realizable value.
J. Foreign Currency Transactions
- Transactions denominated in foreign currency are normally recorded at
the exchange rate prevailing at the time of the transactions.
- Monetary items denominated in foreign currency at the year end and
not covered under forward exchange contracts are translated at the year
end rates.
- Any income or expense on account of exchange difference between the
date of transactions and on settlement or on translation is recognized
in the statement of profit and loss as income or expense.
K. Employees Retirement Benefits
The relevant policies for ''Employee Benefits'' in accordance with
Revised Accounting Standard - 15 are as under:
Short Term Employee Benefits
Short term employee benefits are recognized in the period during which
the services have been rendered.
Long Term Employee Benefits
a) Defined Contribution plan
Provident Fund and employees'' state insurance schemes
- All employees of the Company are entitled to receive benefits under
the Provident Fund, which is a defined contribution plan. Both the
employee and the employer make monthly contributions to the plan at a
predetermined rate (presently 12%) of the employees'' basic salary.
- The Company''s contributions to both these schemes are expensed in the
statement of Profit and Loss.
b) Defined Benefit Plan (i) Gratuity
- The Company provides for gratuity obligations through a defined
benefit retirement plan (the ''Gratuity Plan'') covering all employees.
The Gratuity Plan provides a lump sum payment to vested employees at
retirement or termination of employment based on the respective
employee salary and years of employment with the Company. The Company
provides for the Gratuity Plan based on actuarial valuations in
accordance with Accounting Standard 15 (revised), "Employee Benefits''.
The present value of obligation under gratuity is determined based on
actuarial valuation using Project Unit Credit Method, which recognizes
each period of service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to build up the
final obligation.
(ii) Leave Encashment
- The Company has provided for the liability at period end on account
of unveiled earned leave as per the actuarial valuation as per the
Projected Unit Credit Method.
(iii) Actuarial gains and losses are recognized as and when incurred.
L. CENVAT Credit
The CENVAT Credit available on purchase of raw materials, other
eligible inputs/services and capital goods is adjusted against excise
duty payable on clearance of goods produced and services tax payable on
services rendered. The unadjusted CENVAT credit is shown as "Short Term
Loans and Advances".
M. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of the qualifying assets, if any, are
capitalized as a part of cost of such asset. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
N. Income Tax
Tax expense comprises both current and deferred taxes. Current tax is
provided for on the taxable profits of the year at applicable tax
rates. Deferred income taxes reflect the impact of timing differences
between taxable income and accounting income for the year and reversal
of timing difference of earlier years.
Deferred Tax is measured based on the tax rates and tax laws enacted or
substantially enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that sufficient future taxable income
will be available against which deferred tax assets can be realized.
Unrecognized deferred tax assets of the earlier years are re-assessed
and recognized to the extent it has become reasonably certain that
future taxable income will be available against which such deferred tax
assets can be realized.
O. Earnings Per Share
In determining earning per share, the company considers the net profits
after tax and includes the post tax effects of any extra- ordinary
items. The number of shares used in computing basic earnings per share
is the weighted average number of shares outstanding during the period.
P. Segment Reporting
Segments are identified in line with the Accounting Standard on Segment
Reporting (AS-17) taking into account the organization structure as
well as the differential risk and returns of the segments. The
un-allocable items include income and expenses items which are not
directly identifiable to any segment and therefore not allocated to any
business segment.
Q. Provision, Contingent Liabilities& Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is provable that there will be an out flow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
Financial Statements.
Mar 31, 2015
A. Method of Accounting
The financial statements are prepared on the historical cost convention
and in accordance with generally accepted accounting principles
('GAAP')
a) The Company follows accrual system of accounting in the preparation
of accounts unless otherwise stated.
b) The preparation of the financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported accounts of income and expenses of
the period, reported values of assets and liabilities as of date of the
financial statements. Examples of such estimates include provisions for
doubtful debts, provisions for doubtful loans and advances, provisions
for diminution in value of investments, estimated period of utility of
software package, provisions for value of obsolete/non-moving
inventories etc. Actual results may differ from these estimates.
B. Revenue Recognition
a) Revenue is recognized on accrual basis.
b) Revenue from Services rendered is recognized as and when the
services are performed.
c) Sale of goods is recognized on dispatch to the customer.
d) Insurance claims are accounted for as and when admitted by the
concerned authority.
e) Interest income is recognized as and when accrued.
C. Securities Premium Account
Securities issue expenses and redemption premium payable on optionally
or compulsorily convertible preference share or debentures has been
adjusted against Securities Premium Account.
D. Fixed Assets
a) Owned Assets
Fixed Assets are stated at cost, which includes freight, installation
cost, duties, taxes and other incidental expenses but net of CENVAT.
b) Capital Work-in-progress
All expenses incurred for acquiring, erecting and commissioning of
fixed assets including interest on long term loans utilized for meeting
capital expenditure and incidental expenditure incurred during
construction of projects are shown under capital work-in-progress and
are allocated to the fixed assets on the completion of the respective
projects.
c) Intangible Assets
Cost of software and expenses on development of new products are
accounted for as intangible assets.
E. Lease
a) Fixed assets acquired on lease / hire purchase for an agreed period
has been recognized as an asset and liability. Such recognition is at
an amount equal to the fair value of leased asset at the inception of
lease or present value of minimum lease payment, whichever is less.
b) Lease payment is apportioned between finance charge and reductions
of the outstanding liability.
c) Leases where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items are classified as
operating leases. Operating leases payments are recognized as an
expense in the statement of profit & loss or on a basis, which reflect
the time pattern of such payments appropriately.
F. Depreciation and Amortization
a) Depreciation is provided for all the assets on straight line method,
at the rates prescribed in the Schedule II of the Companies Act, 2013.
b) Depreciation due to increase or decrease in the liability on account
of exchange fluctuation or on account of rollover charges on forward
exchange contract is provided prospectively over the residual life of
the assets.
c) Intangible assets are amortized over a period of five years or life
of product considered at the end of each financial year whichever is
earlier. Amortization commences when the asset is available for use.
G. Impairment of Assets
The fixed assets or group of assets (cash generating unit) are reviewed
for impairment at each Balance Sheet date. In case of such any
indication, the recoverable amount of these assets or group of assets
is determined and if such recoverable amount of the assets or cash
generating unit to which the assets belong is less than its carrying
amount, the impairment loss is recognized by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased.
H. Investments
a) The cost of an investment includes incidental expenses like
brokerage, fees and duties incurred prior to acquisition.
b) Non-current investments are carried at cost. Provision for
diminution in value is made to recognize a decline other than
temporary.
c) Investments which are intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
fair value determined on an individual investment basis.
d) Advance against share application money are classified under the
head "Investments".
I. Inventories
- Inventories are valued at lower of cost or net realizable value.
J. Foreign Currency Transactions
- Transactions denominated in foreign currency are normally recorded at
the exchange rate prevailing at the time of the transaction.
- Monetary items denominated in foreign currency at the year end and
not covered under forward exchange contracts are translated at the
yearend rates.
- Any income or expense on account of exchange difference between the
date of transactions and on settlement or on translation is recognized
in the statement of profit and loss as income or expense.
K. Employees Retirement Benefits
The relevant policies for 'Employee Benefits' in accordance with
Revised Accounting Standard  15 are as under:
Short Term Employee Benefits
Short term employee benefits are recognized in the period during which
the services have been rendered.
Long Term Employee Benefits
a) Defined Contribution plan
Provident Fund and employees' state insurance schemes
- All employees of the Company are entitled to receive benefits under
the Provident Fund, which is a defined contribution plan. Both the
employee and the employer make monthly contributions to the plan at a
predetermined rate (presently 12%) of the employees' basic salary.
- The Company's contributions to both these schemes are expensed in the
statement of Profit and Loss.
b) Defined Benefit Plan
(i) Gratuity
- The Company provides for gratuity obligations through a defined
benefit retirement plan (the 'Gratuity Plan') covering all employees.
The Gratuity Plan provides a lump sum payment to vested employees at
retirement or termination of employment based on the respective
employee salary and years of employment with the Company. The Company
provides for the Gratuity Plan based on actuarial valuations in
accordance with Accounting Standard 15 (revised), "Employee Benefits'.
The present value of obligation under gratuity is determined based on
actuarial valuation using Project Unit Credit Method, which recognizes
each period of service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to build up the
final obligation.
(ii) Leave Encashment
- The Company has provided for the liability at period end on account
of unveiled earned leave as per the actuarial valuation as per the
Projected Unit Credit Method
(iii) Actuarial gains and losses are recognized as and when incurred.
L. CENVAT Credit
The CENVAT Credit available on raw materials, other eligible
inputs/services and capital goods is adjusted against excise duty
payable on clearance of goods produced and services tax payable on
services rendered. The unadjusted CENVAT credit is shown as "Short Term
Loans and Advances".
M. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of the qualifying assets, if any, are
capitalized as a part of cost of such asset. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
N. Income Tax
Tax expense comprises both current and deferred taxes. Current tax is
provided for on the taxable profits of the year at applicable tax
rates. Deferred income taxes reflect the impact of timing differences
between taxable income and accounting income for the year and reversal
of timing difference of earlier years.
Deferred Tax is measured based on the tax rates and tax laws enacted or
substantially enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that sufficient future taxable income
will be available against which deferred tax assets can be realized.
Unrecognized deferred tax assets of the earlier years are re-assessed
and recognized to the extent it has become reasonably certain that
future taxable income will be available against which such deferred tax
assets can be realized.
O. Earnings Per Share
In determining earning per share, the company considers the net profits
after tax and includes the post tax effects of any extra- ordinary
items. The number of shares used in computing basic earnings per share
is the weighted average number of shares outstanding during the period.
P. Segment Reporting
Segments are identified in line with the Accounting Standard on Segment
Reporting (AS-17) taking into account the organization structure as
well as the differential risk and returns of the segments. The
un-allocable items include income and expenses items which are not
directly identifiable to any segment and therefore not allocated to any
business segment.
Q. Provision, Contingent Liabilities& Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is provable that there will be an out flow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
Financial Statements.
Mar 31, 2014
A. Method of Accounting
a) The financial statements are prepared on the historical cost
convention and in accordance with generally accepted accounting
principles (''GAAP'')
b) The Company follows accrual system of accounting in the preparation
of accounts unless otherwise stated.
c) The preparation of the financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported accounts of income and expenses of
the period, reported values of assets and liabilities as of date of the
financial statements. Examples of such estimates include provisions for
doubtful debts, provisions for doubtful loans and advances, provisions
for diminution in value of investments, estimated period of utility of
software package, provisions for value of obsolete/non moving
inventories etc. Actual results may differ from these estimates.
B. Revenue Recognition
a) Revenue is recognized on accrual basis.
b) Revenue from Services rendered is recognized as and when the
services are performed.
c) Sale of goods is recognized on dispatch to the customer.
d) Insurance claims are accounted for as and when admitted by the
concerned authority.
e) Interest income is recognized as and when accrued.
C. Securities Premium Account
Securities issue expenses and redemption premium payable on optionally
or compulsorily convertible preference share or debentures has been
adjusted against Securities Premium Account.
D. Fixed Assets
a) Owned Assets
Fixed Assets are stated at cost, which includes freight, installation
cost, duties, taxes and other incidental expenses but net of CENVAT.
b) Capital Work-in-progress
All expenses incurred for acquiring, erecting and commissioning of
fixed assets including interest on long term loans utilized for meeting
capital expenditure and incidental expenditure incurred during
construction of projects are shown under capital work-in-progress and
are allocated to the fixed assets on the completion of the respective
projects.
c) Intangible Assets
Cost of software and expenses on development of new products are
accounted for as intangible assets.
E. Lease
a) Fixed assets acquired on lease / hire purchase for an agreed period
has been recognized as an asset and liability. Such recognition is at
an amount equal to the fair value of leased asset at the inception of
lease or present value of minimum lease payment, whichever is less.
b) Lease payment is apportioned between finance charge and reductions
of the outstanding liability.
c) Leases where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items are classified as
operating leases. Operating leases payments are recognized as an
expense in the statement of profit & loss or on a basis, which reflect
the time pattern of such payments appropriately.
F. Depreciation and Amortization
a) Depreciation is provided for all the assets on straight line method,
at the rates prescribed in the Schedule XIV of the Companies Act, 1956.
b) Depreciation due to increase or decrease in the liability on account
of exchange fluctuation or on account of rollover charges on forward
exchange contract is provided prospectively over the residual life of
the assets.
c) Intangible assets are amortized over a period of five years or life
of product considered at the end of each financial year whichever is
earlier. Amortization commences when the asset is available for use.
G. Impairment of Assets
The fixed assets or group of assets (cash generating unit) are reviewed
for impairment at each Balance Sheet date. In case of such any
indication, the recoverable amount of these assets or group of assets
is determined and if such recoverable amount of the assets or cash
generating unit to which the assets belong is less than its carrying
amount, the impairment loss is recognized by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased.
H. Investments
a) The cost of an investment includes incidental expenses like
brokerage, fees and duties incurred prior to acquisition.
b) Non-current investments are carried at cost. Provision for
diminution in value is made to recognize a decline other than
temporary.
c) Investments which are intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
fair value determined on an individual investment basis.
d) Advance against share application money are classified under the
head ÂInvestments".
I. Inventories
Inventories are valued at lower of cost or net realizable value.
J. Foreign Currency Transactions
Transactions denominated in foreign currency are normally recorded at
the exchange rate prevailing at the time of the transaction.
Monetary items denominated in foreign currency at the year end and not
covered under forward exchange contracts are translated at the yearend
rates.
Any income or expense on account of exchange difference between the
date of transactions and on settlement or on translation is recognized
in the statement of profit and loss as income or expense.
K. Employees Retirement Benefits
The relevant policies for ''Employee Benefits'' in accordance with
Revised Accounting Standard - 15 are as under:
Short Term Employee Benefits
Short term employee benefits are recognized in the period during which
the services have been rendered.
Long Term Employee Benefits
a) Defined Contribution plan
Provident Fund and employees'' state insurance schemes
All employees of the Company are entitled to receive benefits under the
Provident Fund, which is a defined contribution plan. Both the employee
and the employer make monthly contributions to the plan at a
predetermined rate (presently 12%) of the employees'' basic salary.
The Company''s contributions to both these schemes are expensed in the
statement of Profit and Loss.
b) Defined Benefit Plan
(i) Gratuity
The Company provides for gratuity obligations through a defined benefit
retirement plan (the ''Gratuity Plan'') covering all employees. The
Gratuity Plan provides a lump sum payment to vested employees at
retirement or termination of employment based on the respective
employee salary and years of employment with the Company. The Company
provides for the Gratuity Plan based on actuarial valuations in
accordance with Accounting Standard 15 (revised), ÂEmployee
Benefits''. The present value of obligation under gratuity is determined
based on actuarial valuation using Project Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation.
(ii) Leave Encashment
The Company has provided for the liability at period end on account of
unavailed earned leave as per the actuarial valuation as per the
Projected Unit Credit Method.
(iii) Actuarial gains and losses are recognized as and when incurred.
L. CENVAT Credit
The CENVAT Credit available on raw materials, other eligible
inputs/services and capital goods is adjusted against excise duty
payable on clearance of goods produced and services tax payable on
services rendered. The unadjusted CENVAT credit is shown as ÂShort
Term Loans and Advances".
M. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of the qualifying assets, if any, are
capitalized as a part of cost of such asset. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
N. Income Tax
Tax expense comprises both current and deferred taxes. Current tax is
provided for on the taxable profits of the year at applicable tax
rates. Deferred income taxes reflect the impact of timing differences
between taxable income and accounting income for the year and reversal
of timing difference of earlier years.
Deferred Tax is measured based on the tax rates and tax laws enacted or
substantially enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that sufficient future taxable income
will be available against which deferred tax assets can be realized.
Unrecognized deferred tax assets of the earlier years are re-assessed
and recognized to the extent it has become reasonably certain that
future taxable income will be available against which such deferred tax
assets can be realized.
O. Earning Per Share
In determining earning per share, the company considers the net profits
after tax and includes the post tax effects of any extra- ordinary
items. The number of shares used in computing basic earning per share
is the weighted average number of shares outstanding during the period.
P. Segment Reporting
Segments are identified in line with the Accounting Standard on Segment
Reporting (AS-17) taking into account the organization structure as
well as the differential risk and returns of the segments. The
un-allocable items include income and expenses items which are not
directly identifiable to any segment and therefore not allocated to any
business segment.
Q. Provision, Contingent Liabilities& Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is provable that there will be an out flow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
Financial Statements.
Mar 31, 2013
A. Method of Accounting
a) The financial statements are prepared on the historical cost
convention and in accordance with generally accepted accounting
principles (ÂGAAP'')
b) The Company follows accrual system of accounting in the preparation
of accounts unless otherwise stated.
c) The preparation of the financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported accounts of income and expenses of
the period, reported values of assets and liabilities as of date of the
financial statements. Examples of such estimates include provisions for
doubtful debts, provisions for doubtful loans and advances, provisions
for diminution in value of investments, estimated period of utility of
software package, provisions for value of obsolete/non moving
inventories etc. Actual results may differ from these estimates.
B. Revenue Recognition
a) Revenue is recognized on accrual basis.
b) Revenue from services rendered is recognized as and when the
services are performed.
c) Sale of goods is recognized on dispatch to the customer.
d) Insurance claims are accounted for as and when admitted by the
concerned authority.
e) Interest income is recognized as and when accrued.
C. Securities Premium Account
Securities issue expenses and redemption premium payable on optionally
or compulsorily convertible preference share or debentures has been
adjusted against Securities Premium Account.
D. Fixed Assets
a) Owned Assets
Fixed Assets are stated at cost, which includes freight, installation
cost, duties, taxes and other incidental expenses but net of CENVAT.
b) Capital Work-in-progress
All expenses incurred for acquiring, erecting and commissioning of
fixed assets including interest on long term loans utilized for meeting
capital expenditure and incidental expenditure incurred during
construction of projects are shown under capital work-in-progress and
are allocated to the fixed assets on the completion of the respective
projects.
c) Intangible Assets
Cost of software and expenses on development of new products are
accounted for as intangible assets.
E. Lease
a) Fixed assets acquired on lease / hire purchase for an agreed period
has been recognized as an asset and liability. Such recognition is at
an amount equal to the fair value of leased asset at the inception of
lease or present value of minimum lease payment, whichever is less.
b) Lease payment is apportioned between finance charge and reductions
of the outstanding liability.
c) Leases where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items are classified as
operating leases. Operating leases payments are recognized as an
expense in the statement of profit & loss or on a basis, which reflect
the time pattern of such payments appropriately.
F. Depreciation and Amortization
a) Depreciation is provided for all the assets on straight line method,
at the rates prescribed in the Schedule XIV of the Companies Act, 1956.
b) Depreciation due to increase or decrease in the liability on account
of exchange fluctuation or on account of rollover charges on forward
exchange contract is provided prospectively over the residual life of
the assets.
c) Intangible assets are amortized over a period of five years or life
of product considered at the end of each financial year whichever is
earlier. Amortization commences when the asset is available for use.
G. Impairment of Assets
The fixed assets or group of assets (cash generating unit) are reviewed
for impairment at each Balance Sheet date. In case of such any
indication, the recoverable amount of these assets or group of assets
is determined and if such recoverable amount of the assets or cash
generating unit to which the assets belong is less than its carrying
amount, the impairment loss is recognized by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased.
H. Investments
a) The cost of an investment includes incidental expenses like
brokerage, fees and duties incurred prior to acquisition.
b) Non-current investments are carried at cost. Provision for
diminution in value is made to recognize a decline other than
temporary.
c) Investments which are intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
fair value determined on an individual investment basis.
d) Advance against share application money are classified under the
head "Investments".
I. Inventories
Inventories are valued at lower of cost or net realizable value.
J. Foreign Currency Transactions
a) Transactions denominated in foreign currency are normally recorded
at the exchange rate prevailing at the time of the transaction.
b) Monetary items denominated in foreign currency at the year end and
not covered under forward exchange contracts are translated at the year
end rates.
c) Any income or expense on account of exchange difference between the
date of transactions and on settlement or on translation is recognized
in the statement of profit and loss as income or expense.
K. Employees Retirement Benefits
The relevant policies for ÂEmployee Benefits'' in accordance with
Revised Accounting Standard - 15 are as under:
Short Term Employee Benefits
Short term employee benefits are recognized in the period during which
the services have been rendered.
Long Term Employee Benefits
a) Defined Contribution plan
Provident Fund and employees'' state insurance schemes
All employees of the Company are entitled to receive benefits under the
Provident Fund, which is a defined contribution plan. Both the employee
and the employer make monthly contributions to the plan at a
predetermined rate (presently 12%) of the employees'' basic salary.
The Company''s contributions to both these schemes are expensed in the
statement of Profit and Loss.
b) Defined Benefit Plan
(i) Gratuity
The Company provides for gratuity obligations through a defined benefit
retirement plan (the ÂGratuity Plan'') covering all employees. The
Gratuity Plan provides a lump sum payment to vested employees at
retirement or termination of employment based on the respective
employee salary and years of employment with the Company. The Company
provides for the Gratuity Plan based on actuarial valuations in
accordance with Accounting Standard 15 (revised), "Employee Benefits".
The present value of obligation under gratuity is determined based on
actuarial valuation using Project Unit Credit Method, which recognizes
each period of service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to build up the
final obligation.
(ii) Leave Encashment
The Company has provided for the liability at period end on account of
unavailed earned leave as per the actuarial valuation as per the
Projected Unit Credit Method.
(iii) Actuarial gains and losses are recognized as and when incurred.
L. CENVAT Credit
The CENVAT Credit available on raw materials, other eligible inputs and
capital goods is adjusted against excise duty payable on clearance of
goods produced. The unadjusted CENVAT credit is shown as "Short Term
Loans and Advances".
M. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of the qualifying assets, if any, are
capitalized as a part of cost of such asset. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
N. Income Tax
Tax expense comprises both current and deferred taxes. Current tax is
provided for on the taxable profits of the year at applicable tax
rates. Deferred income taxes reflect the impact of timing differences
between taxable income and accounting income for the year and reversal
of timing difference of earlier years.
Deferred Tax is measured based on the tax rates and tax laws enacted or
substantially enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that sufficient future taxable income
will be available against which deferred tax assets can be realized.
Unrecognized deferred tax assets of the earlier years are re-assessed
and recognized to the extent it has become reasonably certain that
future taxable income will be available against which such deferred tax
assets can be realized.
O. Earning Per Share
In determining earning per share, the company considers the net profits
after tax and includes the post tax effects of any extra- ordinary
items. The number of shares used in computing basic earning per share
is the weighted average number of shares outstanding during the period.
P. Segment Reporting
Segments are identified in line with the Accounting Standard on Segment
Reporting (AS-17) taking into account the organization structure as
well as the differential risk and returns of the segments. The
un-allocable items include income and expenses items which are not
directly identifiable to any segment and therefore not allocated to any
business segment.
Q. Provision, Contingent Liabilities& Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is provable that there will be an out flow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
Financial Statements.
Mar 31, 2011
1. Accounting Convention
The financial statements are prepared under historical cost convention,
on the accrual basis of accounting and in accordance with the
applicable Accounting Standards and provision of Companies Act, 1
956.Accounting policies not specifically referred to otherwise with
generally accepted accounting principle followed by the Company.
2. Fixed Assets
Fixed Assets are stated at the cost of acquisition including taxes,
duties, freight and other incidental expenses related to acquisition
and installation.
3. Depreciation
Depreciation on fixed assets Is provided an the straight-line basis at
the rates and manner prescribed under Schedule X!V of the Companies
Act, 1956 except on projectors and servers where the depreciation has
been provided on the basis of estimated residual life of 2 years.
4. Investments
Investments are classified as long term and valued at cost. Provision
for domination is made only in opinion of management such a decline is
other than temporary in nature.
5. Revenue recognition
Production and acquisition cost for TV and other programs are net of
recoveries. Sales and services are recognized at the point of dispatch/
deliveries to customers.
6. Inventories
Stock of Rights, TV programs, Music albums, etc, if any, are valued at
cost on FIFO basis.
7. Foreign Currency Transactions :
(a) Expenditure in Foreign Currency and imports are accounted at the
rate prevailing on the date of transaction. The difference in the rate
at the time of realisation / payments is absorbed in the profit and
loss account.
(b) The liabilities denominated in Foreign Currency are restated at the
year - end rate and exchange difference are either adjusted in the cost
of respective Fixed Assets or dealt with in the Profit & Loss Account
depending upon the nature of transactions.
8. Retirement Benefits
The gratuity payable is accounted as and when applicable on the
actuarial basis.
9. Provision of contingents Liabilities
A provision is recognized when the Company has present obligation as a
result of past events and it is probable that an out flow of resources
will be required to settle such obligation, in respect of which a
reliable estimate can be made.
Contingent liabilities not provided for in the accounts are disclosed
in the accounts by way of notes specify the nature and quantum of such
liabilities.
10. Income Tax
Provision for taxation includes current tax and deferred tax.
Current tax is measured at the amount expected to be paid to the tax
authorities, using the applicable tax rates and tax laws. '
Deferred tax assets and liabilities are recognized for further tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred Tax assets
are not recognized unless, in the management judgment, there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. The carrying
amount of deferred tax is reviewed at each Balance Sheet date.
Mar 31, 2010
1. Accounting Convention
The financial statements are prepared under historical cost convention,
on the accrual basis of accounting and in accordance with the
applicable Accounting Standards and provision of Companies Act,
1956.Accounting policies not specifically referred to otherwise with
generally accepted accounting principle followed by the Company.
2. Fixed Assets
Fixed Assets are stated at the cost of acquisition including taxes,
duties, freight and other incidental expenses related to acquisition
and installation.
3. Depreciation
Depreciation on fixed assets is provided on the straight-line basis at
the rates and manner prescribed under Schedule XIV of the Companies
Act, 1956 except on projectors and servers where the depreciation has
been provided on the basis of estimated residual life of 2 years.
4. Investments
Investments are classified as long term and valued at cost. Provision
for domination is made only in opinion of management such a decline is
other than temporary in nature.
5. Revenue recognition
Production and acquisition cost for TV and other programs are net of
recoveries. Sales and services are recognized at the point of dispatch/
deliveries to customers.
6. Inventories
Stock of Rights, TV programs, Music albums, etc, if any are valued at
cost on FIFO basis.
7. Retirement Benefits
The gratuity payable is accounted as and when applicable on the
actuarial basis.
8. Provision of contingents Liabilities
A provision is recognized when the Company has present obligation as a
result of past events and it is probable that an out flow of resources
will be required to settle such obligation, in respect of which a
reliable estimate can be made.
Contingent liabilities not provided for in the accounts are disclosed
in the accounts by way of notes specify the nature and quantum of such
liabilities.
9. Income Tax
Provision for taxation includes current tax and deferred tax.
Current tax is measured at the amount expected to be paid to the tax
authorities, using the applicable tax rates and tax laws.
Deferred tax assets and liabilities are recognized for further tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. Deferred Tax
assets are not recognized unless, in the management judgment, there
is virtual certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
The carrying amount of deferred tax is reviewed at each Balance
Sheet date.
Mar 31, 2009
1. Accounting Convention
The financial statements are prepared under historical cost convention,
on the accrual basis of accounting and in accordance with the
applicable Accounting Standards and provision of Companies Act, 1
956.Accounting policies not specifically referred to otherwise with
generally accepted accounting principle followed by the Company.
2. Fixed Assets
Fixed Assets are stated at the cost of acquisition including taxes,
duties, freight and other incidental expenses related to acquisition
and installation.
3. Depreciation
Depreciation on fixed assets is provided on the straight-line basis at
the rates and manner prescribed under Schedule XIV of the Companies
Act, 1 956 except on projectors and servers where the depreciation has
been provided on the basis of estimated residual life of 2 years.
4. Investments
Investments are classified as long term and valued at cost. Provision
for diminition is made only is opinion in management such a decline is
other than temporary in nature.
5. Revenue recognition
Production and acquisition cost for TV and other programs are net of
recoveries. Sales and services are recognized at the point of dispatch/
deliveries to customers. Software uses charges are recognized as per
terms of agreement.
6. Inventories
Stocks of Rights, TV programs, Media software, Music albums, etc are
valued at cost on FIFO method.
7. Miscellaneous Expenditure
The Share Issue expenses are written off equally over a period of ten
years. The deferred revenue expenditure being software expenses (Own
use) be written off equally over a period of 3 years.
8. Retirement Benefits
The gratuity payable be accounted as and when applicable on the
actuarial basis.
9. Provision of Contingent Liabilities
A provision is recognized when the Company has present obligations as a
result of past event and its possible that outflow resources will be
required to settle such obligation in respect of which reliable
estimate can be made. The continized liabilities not provide for in the
accounts are disclose in the account by way of notes specific the
nature and quantum of such liabilities.
10. Income Tax
Provision for taxation includes current tax and deferred tax. .
Current tax is measured at the amount expected to be paid to the tax
authorities, using the applicable tax rates and tax laws.
Deferred tax assets and liabilities are recognized for further tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred
Tax assets are not recognized unless, in the management judgment, there
is virtual certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. The
carrying amount of deferred tax is reviewed at each Balance Sheet date.
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