Mar 31, 2009
1.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention in accordance with the applicable Accounting Standards and the Provisions of the Companies Act. 1956 as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.
1.2 Fixed Assets:
Fixed Assets arc stated at their historical cost less accumulated depreciation. Additions, improvements and major renewals are capitalised.
Depreciation is provided on historical cost basis using Straight-line basis at the rates prescribed in Schedule XIV to the Companies Act. 1956.
Media Library to be depreciated (o 10% on written down value.
1.4 Revenue Recognition
Interest Income is recognised on lime proportion basis, inclusive of related tax deducted at source. Dividend income is recognised when the right to receive the dividend is established.
1.5 Miscellaneous Expenditure:
(i) Preliminary expenses and Public issue expenses are written off over a period of 10 years which was incurred on or before 31.03.2004.
(ii) Preliminary expenses and Public issue expenses incurred after 31.03.2004 are written off in the year in which incurred.
(iii) Deferred Revenue Expenditure is written off over a period of 5 years which was incurred on or before 31.03.2004.
(iv) Deferred Revenue Expenditure incurred after 31.03.2004 are written off in the year in which incurred
Long Term Investments
Investments arc valued at cost. Diminution in the value of investments is recognised only if such decline is other than temporary in the managements opinion.
Current investments are stated at lower of cost and fair value.
Inventories are valued as under:
Finished Goods - At estimated cost
Stock of Tapes - At cost or net realisable value (which ever is lower.)
Work in Progress - At estimated cost
Finished goods and W1P are valued at estimated cost given the nature of industry.
Notes: i) Cost of infotainment software is amortised in view of its regular use in ongoing and future programmes.
ii) For the purpose of taxation, production cost is revenue expenditure and treated as such.
1.9 Retirement Benefits: .
Short-term employee benefits
These are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.
Lung-term employee benefits
The company provides for gratuity to (its employees in the form of defined benefit retirement plan (the "Gratuity Plan") covering all employees. The Plan provides a lump sum payment to vested employees at retirement, death or on termination of employment of an amount based on the respective employees salary and the years of employment with the company. The company provides for gratuity based on the actuarial valuation.
Liability in respect of Provision for Leave Encashment is made, based on the actuarial valuation made by an independent actuary as at th;- Balance Sheet date.
1.10 Foreign Exchange Transactions
Foreign currency transactions arising during the year are recorded at the exchange rate prevailing on the date of transaction. Closing balance of current Assets and Liabilities arc converted at the rate of exchange prevailing at the end of the year. Any increase or decrease arising out of the above is taken to the Profit & Loss Account.
1.11 Income Tax
Current lax is the amount of tax payable on the taxable income for the year as determined in accordance with the Provisions of Income Tax Act. 1961.
Fringe Benefit Tax on designated expenses has been calculated as per the Provisions of Income Tax Act, 1961.