Mar 31, 2016
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
A. The financial statements of the Company have been prepared under the historical cost convention in accordance with the Accounting Standards specified by Companies (Accounts) Rules, 2014 issued by the Central Government and the relevant provisions of the Companies Act, 2013, as amended to the extent applicable.
B. All financial transactions have been recognized on accrual basis. The preparation of financial statements in conformity with the GAAP requires that the management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from those estimates.
1.2 REVENUE RECOGNITION
Income from movie and related rights are recognised in accordance with the terms of the agreements on accrual basis. Interest income is recognized on time proportionate basis. Income earned on licensing the copyrights is recognized on time proportionate basis.
1.3 USE OF ESTIMATES
In preparation of financial statements conforming to GAAP requirements certain estimates and assumptions are essentially required to be made with respect to items such as provision for doubtful debts, future obligations under employee retirement benefit plans, income taxes and the useful life period of Fixed Assets. Due care and diligence have been exercised by the Management in arriving at such estimates and assumptions since they may directly affect the reported amounts of income and expenses during the year as well as the balances of Assets and Liabilities including those which are contingent in nature as at the date of reporting of the financial statements.
To comply with GAAP requirements relating to impairment of assets, if any, the Management periodically determines such impairment using external and internal resources for such assessment. Loss, if any, arising out of such impairment is expensed as stipulated under the GAAP requirements. Contingencies are recorded when a liability is likely to be incurred and the amount can be reasonably estimated. To this extent the results may differ from such estimates
1.4 FIXED ASSETS AND DEPRECIATION
Fixed Assets are stated at acquisition cost. Depreciation is charged on a pro-rata basis on a straight-line method as per the rates and in the manner prescribed under the Schedule II to the Companies Act, 2013, as amended.
1.5 BENEFITS TO EMPLOYEES GRATUITY
The liability as at the Balance Sheet date is provided for based on the actuarial valuation carried out in accordance with Accounting Standard 15 (Revised 2005) on "Employee
Benefits" as at the end of the period. Actuarial Gains/Losses are recognized immediately in Statement of Profit & Loss.
LEAVE ENCASHMENT
Leave encashment is paid for in accordance with the rules of the Company and provided based on an actuarial valuation as at the balance sheet date. Actuarial Gains/Losses are recognized immediately in Statement of Profit & Loss.
OTHER BENEFIT PLANS
Contributions paid under defined contribution plans are recognized in the Statement of Profit and Loss in each year. Contribution plans primarily consist of Provident Fund administered and managed by the Government of India. The company makes monthly contributions and has no further obligations under the plan beyond its contributions.
1.6 INVESTMENTS
Long-term investments are stated at cost less diminution, other than temporary, in the value of such investments, if any. Current investments are valued at cost or market value whichever is lower.
1.7 INVENTORY
Inventory at the yearend consists of film under production Work in progress (WIP). The inventory WIP are valued at cost or net realizable value whichever is less. Cost includes direct and indirect cost relating to film production activities.
1.8 FOREIGN CURRENCY TRANSACTIONS
All foreign currency transactions are accounted for at the rates prevailing on the dates of the transaction. Foreign currency assets and liabilities are converted at the yearend rates as applicable. The exchange difference on settlement / conversion is adjusted to Statement of Profit and Loss.
1.9 TAXES ON INCOME
Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the relevant tax laws. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realised against future taxable profits.
1.10 LEASES
The assets purchased under hire purchase agreements are included in the Fixed Assets block. The value of the asset purchased is capitalized in the books. A liability for the same amount is created at the time of entering into the agreement. The payments are made to the HP vendors as per the EMI''s given in the hire purchase agreements. The finance charges are debited to the statement of profit and loss and the principal amount is adjusted against the liability created for the vendor.
Lease rentals in respect of operating lease arrangements are charged to expense on a straight-line basis over the term of the related lease agreement.
1.11 BORROWING COST
Expenditure on borrowing cost on the loans obtained specifically for acquisition, construction or production of qualifying assets are capitalized as part of the cost of that asset. Other borrowing costs are charged to revenue over the tenure of the loan.
1.12 IMPAIRMENT OF ASSETS
The Company reviews the carrying values of tangible and intangible assets for any possible impairment at each Balance Sheet date. Impairment loss, if any, is recognized in the year in which the impairment takes place.
1.13 CASH FLOW STATEMENT
The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements".
1.14 SEGMENT REPORTING
The Company operates in only one segment viz. movie and related activities. Hence segment reporting is not applicable.
1.15 EARNINGS PER SHARE
The earnings considered for ascertaining the Company''s Earnings Per Share comprises the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted EPS comprises the weighted average shares considered for deriving basic EPS, and also the weighted average number of equity shares that would be issued on the conversion of all dilutive potential equity shares.
1.16 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognized when the Company has an obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.
Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made ,the fact is disclosed.
Considering the principles of prudence, the above deferred tax asset has not been recognized as at 31.03.2016.
The provision for income tax has been made as per the Income Tax Act, 1961.
Mar 31, 2014
1.1 Basis of preparation of financial statements
A. The financial statements of the Company have been prepared under the
historical cost convention in accordance with the Accounting Standards
specified by Companies (Accounting Standards) Rules, 2006 issued by the
Central Government and the relevant provisions of the Companies Act,
1956, to the extent applicable.
B. All financial transactions have been recognized on accrual basis.
The preparation of financial statements in conformity with the GAAP
requires that the management makes estimates and assumptions that afect
the reported amounts of assets and liabilities, disclosure of
contingent liabilities as at the date of the financial statements and
the reported amounts of revenue and expenses during the reported
period. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
future results could difer from those estimates.
1.2 Revenue Recognition
Income from movie and related rights are recognised in accordance with
the terms of the agreements on accrual basis. Interest income is
recognized on time proportionate basis. Income earned on licensing the
copyrights is recognized on time proportionate basis.
1.3 Use of Estimates
In preparation of financial statements conforming to GAAP requirements
certain estimates and assumptions are essentially required to be made
with respect to items such as provision for doubtful debts, future
obligations under employee retirement benefit plans, income taxes and
the useful life period of fixed Assets. Due care and diligence have
been exercised by the Management in arriving at such estimates and
assumptions since they may directly afect the reported amounts of
income and expenses during the year as well as the balances of Assets
and Liabilities including those which are contingent in nature as at
the date of reporting of the financial statements.
To comply with GAAP requirements relating to impairment of assets, if
any, the Management periodically determines such impairment using
external and internal resources for such assessment. Loss, if any,
arising out of such impairment is expensed as stipulated under the GAAP
requirements. Contingencies are recorded when a liability is likely to
be incurred and the amount can be reasonably estimated. To this extent
the results may difer from such estimates
1.4 Fixed Assets and Depreciation
fixed Assets are stated at acquisition cost. Depreciation is charged on
a pro-rata basis on a straight-line method as per the rates and in the
manner prescribed under the schedule XIV to the Companies Act, 1956, as
amended.
1.5 benefits to employees
Gratuity
The liability as at the Balance Sheet date is provided for based on the
actuarial valuation carried out in accordance with Accounting Standard
15 (Revised 2005) on "Employee benefits" as at the end of the period.
Actuarial Gains/Losses are recognized immediately in Statement of Profit
& Loss.
Leave Encashment
Leave encashment is paid for in accordance with the rules of the
Company and provided based on an actuarial valuation as at the balance
sheet date. Actuarial Gains/Losses are recognized immediately in
Statement of Profit & Loss.
Other benefit Plans
Contributions paid under Defined contribution plans are recognized in
the Statement of Profit and Loss in each year. Contribution plans
primarily consist of Provident fund administered and managed by the
Government of India. The company makes monthly contributions and has no
further obligations under the plan beyond its contributions.
1.6 Investments
Long-term investments are stated at cost, less diminution other than
temporary in the value of such investments, if any. Current investments
are valued at cost or market value whichever is lower.
1.7 Inventory
Inventory at the yearend consists of flm production work in progress
(wIP). The inventory wIP are valued at cost or net realizable value
whichever is less. Cost includes direct and indirect cost relating to
flm production activity.
1.8 Foreign Currency Transactions
All foreign currency transactions are accounted for at the rates
prevailing on the dates of the transaction. foreign currency assets
and liabilities are converted at the yearend rates as applicable. The
exchange diference on settlement / conversion is adjusted to Statement
of Profit and Loss.
1.9 Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the relevant tax laws. Deferred income taxes refect the
impact of current year timing diferences between taxable income and
accounting income for the year and reversal of timing diferences of
earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufcient future taxable income will be available against
which such deferred tax assets can be realised. In situations where
the company has unabsorbed depreciation or carry forward tax losses,
deferred tax assets are recognised only if there is virtual certainty
supported by convincing evidence that such deferred tax assets can be
realised against future taxable Profits.
1.10 Leases
The assets purchased under hire purchase agreements are included in the
fixed Assets block. The value of the asset purchased is capitalized in
the books. A liability for the same amount is created at the time of
entering into the agreement. The payments are made to the hP vendors as
per the EMI''s given in the hire purchase agreements. The finance charges
are debited to the statement of Profit and loss and the principal amount
is adjusted against the liability created for the vendor.
Lease rentals in respect of operating lease arrangements are charged to
expense on a straight-line basis over the term of the related lease
agreement.
1.11 Borrowing Cost
Expenditure on borrowing cost on the loans obtained Specifically for
acquisition, construction or production of qualifying assets are
capitalized as part of the cost of that asset. Other borrowing costs
are charged to revenue over the tenure of the loan.
1.12 Impairment of Assets
The Company reviews the carrying values of tangible and intangible
assets for any possible impairment at each Balance Sheet date.
Impairment loss, if any, is recognized in the year in which the
impairment takes place.
1.13 Cash Flow Statement
Cash fow statement is prepared under the indirect method as per
Accounting Standard 3 "Cash flow Statements".
1.14 Segment Reporting
The Company operates in only one segment viz. movie and related
activities. hence segment reporting is not applicable.
1.15 Earnings per Share
The earnings considered for ascertaining the Company''s Earnings Per
Share comprises the net Profit after tax. The number of shares used in
computing Basic EPS is the weighted average number of shares
outstanding during the period. The number of shares used in computing
diluted EPS comprises the weighted average shares considered for
deriving basic EPS, and also the weighted average number of equity
shares that would be issued on the conversion of all dilutive potential
equity shares.
1.16 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized when the Company has an obligation as a
result of past events and it is probable that an outflow of resources
will be required to settle the obligation and the amount can be
reliably estimated. Obligations are assessed on an ongoing basis and
only those having a largely probable outflow of resources are provided
for.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation cannot be made.
Mar 31, 2013
1.1 Basis of preparation of financial statements
A. The financial statements of the Company have been prepared under
the historical cost convention in accordance with the Accounting
Standards specified by Companies (Accounting Standards) Rules, 2006
issued by the Central Government and the relevant provisions of the
Companies Act, 1956, to the extent applicable.
B. All financial transactions have been recognized on accrual basis.
The preparation of financial statements in conformity with the GAAP
requires that the management makes estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of
contingent liabilities as at the date of the financial statements and
the reported amounts of revenue and expenses during the reported
period. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results could differ from those estimates.
1.2 Revenue Recognition
Income from movie rights are recognized in accordance with the terms of
the agreements on accrual basis. Interest income is recognized on time
proportionate basis. Income earned on licensing the copyrights is also
recognized on time proportionate basis.
1.3 Use of Estimates
In preparation of financial statements conforming to GAAP requirements
certain estimates and assumptions are essentially required to be made
with respect to items such as provision for doubtful debts, future
obligations under employee retirement benefit plans, income taxes and
the useful life period of Fixed Assets. Due care and diligence have
been exercised by the Management in arriving at such estimates and
assumptions since they may directly affect the reported amounts of
income and expenses during the year as well as the balances of Assets
and Liabilities including those which are contingent in nature as at
the date of reporting of the financial statements.
To comply with GAAP requirements relating to impairment of assets, if
any, the Management periodically determines such impairment using
external and internal resources for such assessment. Loss, if any,
arising out of such impairment is expensed as stipulated under the GAAP
requirements. Contingencies are recorded when a liability is likely to
be incurred and the amount can be reasonably estimated. To this extent
the results may differ from such estimates.
1.4 Fixed Assets and Depreciation
Fixed Assets are stated at acquisition cost. Depreciation is charged on
a pro-rata basis on a straight-line method as per the rates and in the
manner prescribed under the schedule XIV to the Companies Act, 1956, as
amended.
1.5 Benefits to employees Gratuity
The liability as at the Balance Sheet date is provided for based on the
actuarial valuation carried out in accordance with Accounting Standard
15 (Revised 2005) on "Employee Benefits" as at the end of the period.
Actuarial Gains/Losses are recognized immediately in Statement of
Profit & Loss.
Leave Encashment
Leave encashment is paid for in accordance with the rules of the
Company and provided based on an actuarial valuation as at the balance
sheet date. Actuarial Gains/Losses are recognized immediately in
Statement of Profit & Loss.
Other Benefit Plans
Contributions paid under defined contribution plans are recognized in
the Statement of Profit and Loss in each year. Contribution plans
primarily consist of Provident Fund administered and managed by the
Government of India. The Company makes monthly contributions and has no
further obligations under the plan beyond its contributions.
1.6 Investments
Long-term investments are stated at cost, less diminution other than
temporary in the value of such investments, if any. Current investments
are valued at cost or market value whichever is lower.
1.7 Inventory
Inventory at the year end consists of film production Work in progress
(WIP). The inventory WIP are valued at cost or net realizable value
whichever is less. Cost includes direct and indirect cost relating to
film production activity.
1.8 Foreign Currency Transactions
All foreign currency transactions are accounted for at the rates
prevailing on the dates of the transaction. Foreign currency assets and
liabilities are converted at the year end rates as applicable. The
exchange difference on settlement / conversion is adjusted to Profit
and Loss account.
1.9 Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the relevant tax laws. Deferred income taxes reflect
the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences
of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. In situations
where the Company has unabsorbed depreciation or carry forward tax
losses, deferred tax assets are recognized only if there is virtual
certainty supported by convincing evidence that such deferred tax
assets can be realized against future taxable profits.
1.10 Leases
The assets purchased under hire purchase agreements are included in the
Fixed Assets block. The value of the asset purchased is capitalized in
the books. A liability for the same amount is created at the time of
entering into the agreement. The payments are made to the HP vendors as
per the EMI''s given in the hire purchase agreements. The finance
charges are debited to the profit & loss statement and the principal
amount is adjusted against the liability created for the vendor.
Lease rentals in respect of operating lease arrangements are charged to
expense on a straight-line basis over the term of the related lease
agreement.
1.11 Borrowing Cost
Expenditure on borrowing cost on the loans obtained specifically for
acquisition, construction or production of qualifying assets are
capitalized as part of the cost of that asset. Other borrowing costs
are charged to revenue over the tenure of the loan.
1.12 Impairment of Assets
The Company reviews the carrying values of tangible and intangible
assets for any possible impairment at each Balance Sheet date.
Impairment loss, if any, is recognized in the year in which the
impairment takes place.
1.13 Cash Flow Statement
The Cash flow statement is prepared under the indirect method as per
Accounting Standard 3 "Cash Flow Statements".
1.14 Segment Reporting
The Company operates in only one segment viz. movie and related
activities. Hence segment reporting is not applicable.
1.15 Earnings per Share
The earnings considered for ascertaining the Company''s Earnings Per
Share comprises the net profit after tax. The number of shares used in
computing Basic EPS is the weighted average number of shares
outstanding during the period. The number of shares used in computing
diluted EPS comprises the weighted average shares considered for
deriving basic EPS, and also the weighted average number of equity
shares that would be issued on the conversion of all dilutive potential
equity shares.
1.16 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized when the Company has an obligation as a
result of past events and it is probable that an outflow of resources
will be required to settle the obligation and the amount can be
reliably estimated. Obligations are assessed on an ongoing basis and
only those having a largely probable outflow of resources are provided
for.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the
control of the Company or where any present obligation cannot be
measured in terms of future outflow of resources or where a reliable
estimate of the obligation cannot be made.
Mar 31, 2012
1.1 Basis of preparation of financial statements
A. The financial statements of the Company have been prepared under
the historical cost convention in accordance with the Accounting
Standards specified by Companies (Accounting Standards) Rules, 2006
issued by the Central Government and the relevant provisions of the
Companies Act, 1956, to the extent applicable.
B. All financial transactions have been recognized on accrual basis.
The preparation of financial statements in conformity with the GAAP
requires that the management makes estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of
contingent liabilities as at the date of the financial statements and
the reported amounts of revenue and expenses during the reported
period. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results could differ from those estimates.
1.2 Revenue Recognition
Income from movie rights are recognised in accordance with the terms of
the agreements on accrual basis. Interest income is recognized on time
proportionate basis. Income earned on licensing the copyrights is also
recognized on time proportionate basis.
1.3 Use of Estimates
In preparation of financial statements conforming to GAAP requirements
certain estimates and assumptions are essentially required to be made
with respect to items such as provision for doubtful debts, future
obligations under employee retirement benefit plans, income taxes and
the useful life period of Fixed Assets. Due care and diligence have
been exercised by the Management in arriving at such estimates and
assumptions since they may directly affect the reported amounts of
income and expenses during the year as well as the balances of Assets
and Liabilities including those which are contingent in nature as at
the date of reporting of the financial statements.
To comply with GAAP requirements relating to impairment of assets, if
any, the Management
periodically determines such impairment using external and internal
resources for such assessment. Loss, if any, arising out of such
impairment is expensed as stipulated under the GAAP requirements.
Contingencies are recorded when a liability is likely to be incurred
and the amount can be reasonably estimated. To this extent the results
may differ from such estimates
1.4 Fixed Assets and Depreciation
Fixed Assets are stated at acquisition cost. Depreciation is charged
on a pro-rata basis on a straight-line method as per the rates and in
the manner prescribed under the schedule XIV to the Companies Act,
1956, as amended.
1.5 Benefits to employees
Gratuity
The liability as at the Balance Sheet date is provided for based on the
actuarial valuation carried out in accordance with Accounting Standard
15 (Revised 2005) on "Employee Benefits" as at the end of the period.
Actuarial Gains/Losses are recognized immediately in Statement of
Profit & Loss.
Leave Encashment
Leave encashment is paid for in accordance with the rules of the
Company and provided based on an actuarial valuation as ai the balance
sheet date. Actuarial Gains/Losses are recognized immediately in
Statement of Profit & Loss.
Other Benefit Plans
Contributions paid under defined contribution plans are recognized in
the Statement of Profit and Loss in each year. Contribution plans
primarily consist of Provident Fund administered and managed by the
Government of India. The company makes monthly contributions and has no
further obligations under the plan beyond its contributions.
1.6 Investments
Long-term investments are stated at cost, less diminution other than
temporary in the value of such investments, if any. Current investments
are valued at cost or market value whichever is lower.
1.7 Foreign Currency Transactions
All foreign currency transactions are accounted for at the rates
prevailing on the dates of the transaction. Foreign currency
liabilities are converted at the yearend rates as applicable. The
exchange difference on settlement / conversion is adjusted to Profit
and Loss account.
1.8 Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the relevant tax laws. Deferred income taxes reflect
the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences
of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that such deferred tax
assets can be realised against future taxable profits.
1.9 Leases
The assets purchased under hire purchase agreements are included in the
Fixed Assets block. The value of the asset purchased is capitalized in
the books. A liability for the same amount is created at the time of
entering into the agreement. The payments are made to the HP vendors as
per the EMI's given in the hire purchase agreements. The finance
charges are debited to the profit & loss statement and the principal
amount is adjusted against the liability created for the vendor.
Lease rentals in respect of operating lease arrangements are charged to
expense on a straight-line basis over the term of the related lease
agreement.
1.10 Borrowing Cost
Expenditure on borrowing cost on the loans obtained specifically for
acquisition, construction or production of qualifying assets are
capitalized as part of the cost of that asset. Other borrowing costs
are charged to revenue over the tenure of the loan. The company does
not have any borrowing cost during the current year.
1.11 Impairment of Assets
The Company reviews the carrying values of tangible and intangible
assets for any possible impairment at each Balance Sheet date.
Impairment loss, if any, is recognized in the year in which the
impairment takes place.
1.12 Cash Flow Statement
The Cash flow statement is prepared under the indirect method as per
Accounting Standard 3 "Cash Flow Statements".
1.13 Segment Reporting
The Company operates in only one segment viz. movie right and related
activities. Hence segment reporting is not applicable.
1.14 Earnings per Share
The earnings considered for ascertaining the Company's Earnings Per
Share comprises the net profit after tax. The number of shares used in
computing Basic EPS is the weighted average number of shares
outstanding during the period. The number of shares used in computing
diluted EPS comprises the weighted average shares considered for
deriving basic EPS, and also the weighted average number of equity
shares that would be issued on the conversion of all dilutive potential
equity shares.
1.15 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized when the Company has an obligation as a
result of past events and it is probable that an outflow of resources
will be required to settle the obligation and the amount can be
reliably estimated. Obligations are assessed on an ongoing basis and
only those having a largely probable outflow of resources are provided
for.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation cannot be made.
Mar 31, 2010
1. Basis of preparation of financial statements
A) The financial statements of the Company have been prepared under the
historical cost convention in accordance with the Accounting standards
specified by Companies (Accounting Standards) Rules,2006 issued by the
Central Government, in consultation with National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
1956, to the extent applicable
B) All financial transactions have been recognized on accrual basis.
The preparation of financial statements in conformity with the GAAP
requires that the management makes estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of
contingent liabilities as at the date of the financial statements and
the reported amounts of revenue and expenses during the reported
period. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results could differ from those estimates.
C) Going Concern:
The Company did not carry any business activities during the last four
years. However, the management has been exploring various options to
enter into media financing activities in near future. The Companys
ability to continue as a going concern depends on the future endeavours
of the management and the requisite financial support from its Holding
company, PVP Ventures Limited.
D) The accounting policies have been consistently applied by the
Company and are consistent with those used in the previous year.
2. Revenue Recognition:
As a consistent practice, the Company recognizes revenue on an accrual
basis upon rendering of service.
3. Accounting of Expenditure:
Expenses are accounted on an accrual basis. Provisions have been made
for all known losses and liabilities as on the date of the financial
statements.
4. Benefits to employees:
There were no employees during the year
5. Foreign Currency Transactions:
All foreign currency transactions are accounted
for at the rates prevailing on the dates of the transaction. Foreign
currency liabilities are converted at the yearend rates as applicable.
The exchange difference on settlement / conversion is adjusted to
Profit and Loss account.
6. Taxes on Income:
Tax expense comprises current, deferred and fringe benefit tax. Current
income tax and fringe benefit tax is measured at the amount expected to
be paid to the tax authorities in accordance with the relevant tax
laws. Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that such deferred tax
assets can be realised against future taxable profits.
7. Borrowing Cost:
Expenditure on borrowing cost on the loans obtained specifically for
acquisition, construction or production of qualifying assets are
capitalized as part of the cost of that asset. Other borrowing costs
are charged to revenue over the tenure of the loan. The Company does
not have any borrowing cost during the current year.
8. Impairment of Assets:
The Company reviews the carrying values of tangible and intangible
assets for any possible impairment at each Balance Sheet date.
Impairment loss, if any, is recognized in the year in which the
impairment takes place. The company does not have Fixed Assets -
Tangible or Intangible.
9. Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized when the Company has an obligation as a
result of past events and it is probable that an outflow of
resources,will be required to settle the obligation and the amount can
be reliably estimated. Obligations are assessed on an ongoing basis and
only those having a largely probable outflow of resources are provided for.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation cannot be made.