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.
1.3 Depreciation:
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
i.6 Investments:
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
Current investments are stated at lower of cost and fair value.
1.7 Inventories:
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
Gratuity
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.
Leave Encashment
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.
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