Accounting Policies of Raj Television Network Ltd. Company

Mar 31, 2023

	S. No.	Particulars
	1	Corporate Information
		The company was incorporated vide CIN. L92490TN1994PLC027709 dated 03rd June 1994 issued by Registrar of Companies Chennai, Tamil Nadu. The Company’s shares are listed on the Bombay stock exchange (BSE) and the National stock exchange (NSE) Limited. The Company has its registered office at No.32, Poes Road, Second Street, Teynampet, Chennai-600018, Tamil Nadu, India. The company is into the business of Operating Commercial Satellite Television Channels under the approval from Ministry of Information and Broadcasting and at present company runs 13 TV channels, which are Tamil, Telugu, Malayalam, Hindi, and Kannada language genre. These standalone financial statements reviewed and recommended by the Audit Committee and has been approved by the Board of Directors at their meeting held on May 25, 2023
	2	Significant Accounting Policies
	2.1	Basis of Preparation of Financial Statements The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015, read with Companies (Indian Accounting Standards) Amendment Rules, 2016, as amended and notified under Section 133 of the Companies Act, 2013 (the Act) and other relevant provisions of the Act. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.
		Current Vs Non-Current Clarification The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is: Expected to be realized or intended to sold or consumed in normal operating cycle Held primarily for the purpose of trading Expected to be realized within twelve months after the reporting period, or Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: It is expected to be settled in normal operating cycle It is held primarily for the purpose of trading It is due to be settled within twelve months after the reporting period, or There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.
	2.2	Use of Estimates The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
¦	2.3	Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price (including all duties and taxes after deducting trade discounts and rebates if any) and any attributable cost of bringing the asset to its working condition for its intended use. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. Likewise, when a major expenditure is incurred, its cost is recognized in the carrying amount of the plant and equipment, if it increases the future benefits from the existing asset. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure, are charged to the statement of profit and loss for the period during which such expenses are incurred. For depreciation, the Company identifies and determines cost of assets significant to the total cost of the assets having useful life that is materially different from that of the life of the principal asset. An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from de-

	the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. For depreciation, the Company identifies and determines cost of assets significant to the total cost of the assets having useful life that is materially different from that of the life of the principal asset. An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of Property, plant and equipment are 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. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
2.4	Depreciation Based on a technical assessment and a review of past history of asset usage, management of the Company has not revised its useful lives to those referred to under Schedule II to the Companies Act, 2013 (as amended). Depreciation is provided on the straight-line method (SLM) using useful life prescribed in Part C of Schedule II of the Companies Act, 2013.The useful life of the following class of assets specified in the Part “C” of Schedule II of the Companies Act, 2013 are as follows:
		Sl.No	Category of assets	Useful life
		1	Building	30 years
		2	Plant & Machinery	13 years
		3	Computers	3 years
		4	Vehicles	10 years
		5	Furniture & Fixtures	10 years
	The gross value of PPE includes cost of Land & Buildings amount of Rs.75,42,92,395/- (Previous year Rs.75,42,92,395/-), Plant & Machinery amount of Rs. 67,65,00,815/- (Previous year of Rs. 67,54,33,069/-) Computer and related assets of Rs.8,65,54,258/- (Previous year of Rs. 8,58,54,057/-), Vehicles value of Rs.9,96,40,058/-(Previous year of Rs. 9,96,40,058/-) and Furniture & Fixtures of Rs. 4,20,56,781/-(Previous year of Rs. 3,72,32,292/- L
2.5	Intangible assets and amortization Cost of acquisition of intangible assets & any other direct costs incurred in relation to such acquisition are recognized as Intangible assets. Following initial recognition, Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets with finite lives are amortized over the available useful life of film rights acquired while purchase and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss, unless such expenditure forms part of carrying value of asset. i) Film and program broadcasting rights (‘Satellite Rights’) Acquired Satellite Rights for the broadcast of feature films and other long-form programming such as multi episode t these Satellite Rights cannot be estimated with any reasonable accuracy as these are susceptible to a variety of f products, programming viewership, advertising rates etc., and accordingly cost related to film is fully amortized over t ii) Film production costs, distribution and related rights The cost of production / acquisition rights related to each movie is amortized upon the theatrical release of the movie.
2.6	Impairment of Assets The carrying amounts of the Company’s property, plant and equipment and intangible assets are reviewed at each reporting date to determine whether there is any indication of impairment. If there are indicators of impairment, an assessment is made to determine whether the asset’s carrying value exceeds its recoverable amount. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. Impairment is recognized in statement of profit and loss whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. The recoverable amount is the higher of net selling price, defined as the fair value less costs to sell, and value in use. 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 rates and risks specific to the asset. An impairment loss for an individual asset or cash generating unit are reversed if there has been a change in estimates used to determine the recoverable amount since the last impairment loss was recognized and is only

	determined, net of depreciation or amortization, if no impairment loss had been recognized. Impairment losses were recognized in the statement of profit and loss.
2.7	Inventory: - Usually, the company is having inventory in serial content procured from the other parties. The value of inventory includes cost of content bought from the content provider & cost of dubbing charges for conversion of content into local regional language. Company has calculated the value of inventory based on the available period of usage of serial content as per the agreement entered by the service provider & Raj Television Network Limited.
2.8	Cash and Cash Equivalents ( for purposes of Cash Flow Statement) 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.
2.9	Cash Flow Statement Cash flows are reported using the indirect method, whereby loss before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing, and financing activities of the Company are segregated based on the available information.
2.10	Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to credit risks. i) Advertising income and income from sales of broadcast slots are recognized when the related commercial or programme is telecast. ii) The company has purchased film rights and the same has been sold taking the advantage of the favourable market opportunity. iii) Subscription income represents subscription fees billed to cable operators and Direct to Home (‘DTH’) service providers towards pay-channels operated by the Company, and are recognized in the period during which the service is provided. Subscription fees billed to cable operators are determined based on number of subscription points to which the service is provided based on relevant agreements with such cable operators (along with management''s best estimates of such subscription points wherever applicable), at contractually agreed rates with the Company’s authorized distributor. Subscription income from DTH customers is recognized as and when services are rendered to the customer in accordance with the terms of agreements entered into with the service providers iv) Interest on fixed deposit recorded accordingly rate of interest applied as per deposit form. v) Foreign pay channel subscription fee received from different nations according to the agreement entered by the parties.
2.11	Employee retirement benefits: Provident Fund:- Retirement benefit in the form of provident fund is a defined contribution scheme. Eligible employees receive benefits from a provident fund, which is defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee’s salary. The contributions are made to the Regional Provident Fund which is charged to the Statement of Profit and Loss as incurred. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes the contribution payable to the provident fund scheme as expenditure when the employee renders the related service.
	Gratuity:- The Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible employees. The plan provides a lump sum payment to vested employees at retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months.
	Vesting occurs upon completion of five years of service. The Company has obtained insurance policies with the Life Insurance Corporation of India (LIC) and makes an annual contribution to LIC for amounts notified by LIC. The Company accounts for gratuity benefits payable in future based on an independent external actuarial valuation carried out at the end of the year using the projected unit credit method. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they arise.
	Employee benefit plans - Gratuity A) Defined Contribution plans i) Contribution to Provident Fund: Contributions towards Employees Provident Fund made to the Regional /Employee Provident Fund are recognised as expenses in the year in which the services are rendered. ii) Contribution to Employee State Insurance: Contributions to Employees State Insurance Scheme are recognised as expense in the year in which the services are rendered.
	B) Defined benefit plan - Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on cessation of employment at 15 days salary (last drawn salary) for each completed year of service. The fund has the form of a trust (Raj Television Network Limited Employees Gratuity Trust) and it is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the

		definition of the investment strategy. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk management policy. The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.
		The scheme is funded with an insurance company (LIC) in the form of a qualifying insurance policy. The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan. The principal actuarial assumptions used in determining gratuity obligation for the Company’s plans are shown below:
		Particulars	as on 31.03.2023		as on 31.03.2022
		Discount rate	7.05 % -7.06 %		7.05 % -7.06 %
		Expected rate of return on assets	6.54 % -7.05 %		6.54 % -7.05 %
		Employee turnover	11.88% -13.00%		11.88% -13.00%
		Mortality rate	Indian Assured Lives Mortality (2012-14)		Indian Assured Lives Mortality (2012-14)
		The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Based on the experience of the previous years, the Group expects to contribute about Rs.1.72 crores to the gratuity fund in the next year. However, the actual contribution by the Group will be based on the actuarial valuation report received from the Insurance Company. The major categories of plan assets of the fair value of the total plan assets are as follows: Gratuity plan
		Investments details:		as at 31.03.2023	as at 31.03.2022
		Funds with LIC in the name of Group Gratuity Trust		1,25,41,703	1,10,82,234
		Total		1,25,41,703	1,84,61,446
	2.12	|Taxation 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 balance sheet method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. 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. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. 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.
	2.13	|Earnings Per Share Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.
	2.14	|Foreign Currency Transactions: The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency

		denominated in a currency that is not the company’s functional currency (INR). Foreign currency transactions are recorded at the exchange rates as on the date of the transaction and the exchange difference arising from foreign currency transactions is dealt with in both Profit and Loss account and also in Balance sheet as the case may be.
	2.15	Segment Reporting: As per Ind AS 108, company shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. But Raj Television Network Limited doesn’t have any reportable business or Geographical segment types as mentioned in Ind AS 108.
	2.16	Borrowing Costs: Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. All borrowing costs are expensed in the period they occur.
	2.17	Events after the reporting period: Ind AS-10 has disclose impact about the entity shall incur any events either favourable or unfavourable that occur between the end of the reporting period and the date when the financial statements are approved by the Board of Directors in case of a company, and, by the corresponding approving authority in case of any other entity for issue. There are no material events occurred after the reporting period, which requires adjustment to Assets / Liabilities as on March 31,2022.
	2.18	Provisions and Contingencies Provisions: A provision is recognized when the Company has a present obligation as a result of 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. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. The expense relating to a provision is presented in the statement of profit and loss. A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. An application filed under section 8 of Insolvency and Bankruptcy code 2016 of IBC by M/s. Thaicom Public company limited for enforcement of a Foreign Arbitration award amounting to US$ 9,54,825.24 and the matter sub-judice. The Company discloses existence said contingent liability in the financial statements in the reporting period.

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Mar 31, 2018

1. Summary of significant accounting policies

a) Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (IndAS) notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Companies (Indian Accounting Standards) Amendment Rules, 2016, as amended. For all periods upto and including the year ended March 31, 2017, the Company has prepared its financial statements to comply in all material respects with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (Indian GaAp) and to reflect the financial position and the results of operations of the Company. These financial statements for the year ended March 31, 2018 are the first the Company has prepared in accordance with Ind AS (Refer Annexure attached below for First time adoption of Ind-AS)

The financial statements have been prepared on historical cost basis.

b) Current Vs Non-Current Clarification:

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

- Expected to be realized or intended to sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

c) Property, plant and equipment and Depreciation

As per the Ind-AS 101 Company can avail the carrying value of assets as recognized in its Indian GAAP or fair value of property, plant & Equipment as on transition date. The Company has elected to continue with the carrying value for all of its property, plant and equipment as recognized in its Indian GAAP financial statements as deemed cost at the transition date, viz., April 1, 2016.

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any.

Cost comprises the purchase price (including all duties and taxes after deducting trade discounts and rebates if any) and any attributable cost of bringing the asset to its working condition for its intended use. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. Likewise, when a major expenditure is incurred, its cost is recognized in the carrying amount of the plant and equipment, if it increases the future benefits from the existing asset. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure, are charged to the statement of profit and loss for the period during which such expenses are incurred.

For depreciation, the Company identifies and determines cost of assets significant to the total cost of the assets having useful life that is materially different from that of the life of the principal asset.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from de-recognition of Property, plant and equipment are 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.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Depreciation

Based on a technical assessment and a review of past history of asset usage, management of the Company has not revised its useful lives to those referred to under Schedule II to the Companies Act, 2013 (as amended).

Depreciation is provided on the straight-line method (SLM) using useful life prescribed in Part C of Schedule II of the Companies Act, 2013.The useful life of the following class of assets specified in the Part “C” of Schedule II of the Companies Act, 2013 are as follows:

The gross value of PPE includes cost of Land & Buildings amount of Rs.75,20,01,321/- (Previous year Rs.74,86,69,797/

- and April 1, 2016 Rs.74,35,25,066/-), Plant & Machinery amount of Rs. 62,79,72,693/-(Previous year of Rs.62,69,67,212/

- and April1, 2016 Rs. 59,94,79,140/-), Computer and related assets of Rs. 7,80,71,288/- (Previous year of Rs.7,60,27,808/

- and April1,2016 Rs. 7,24,11,832/-), Vehicles value of Rs.10,38,96,301/-(Previous year of Rs. 10,38,96,301 and April1, 2016 is Rs.4,59,96,377) and Furniture & Fixtures of Rs. 2,69,65,652/-(Previous year of Rs. 2,69,41,035/- and April1, 2016 of Rs. 2,69,41,035/-).

d) Intangible assets and amortization

The company has considered Film rights as intangible assets for the first time. The company has considered the value of film rights as on 1^st April, 2016 as opening value of intangible assets.Intangible assets acquired are measured on initial recognition at cost. Cost of acquisition of intangible assets & any other direct costs incurred in relation to such acquisition are recognized as Intangible assets. Following initial recognition, Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

Intangible assets with finite lives are amortized over the available useful of film rights acquired while purchase and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

i) Film and program broadcasting rights (‘Satellite Rights'')

Acquired Satellite Rights for the broadcast of feature films and other long-form programming such as multi episode television serials are initially stated at cost. Future revenues from use of these Satellite Rights cannot be estimated with any reasonable accuracy as these are susceptible to a variety of factors, such as the level of market acceptance of television products, programming viewership, advertising rates etc., and accordingly cost related to film is fully amortized over the period of life of the asset. And the cost related to program broadcasting rights / multi episodes series are charged as expenses based ontelecasted episodes.

ii) Film production costs, distribution and related rights

The cost of production / acquisition of all the rights related to each movie is amortized upon the theatrical release of the movie.

e) Borrowing costs:-

Borrowing costs are expensed in the period in which they are incurred.

f) Revenue recognition:-

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to credit risks.

i) Advertising income and income from sales of broadcast slots are recognized when the related commercial or programme is telecast.

ii) The company has purchased film rights and the same has been sold taking the advantage of the favorable market opportunity.

iii) Subscription income represents subscription fees billed to cable operators and Direct to Home (‘DTH'') service providers towards pay-channels operated by the Company, and are recognized in the period during which the service is provided. Subscription fees billed to cable operators are determined based on number of subscription points to which the service is provided based on relevant agreements with such cable operators (along with management''s best estimates of such subscription points wherever applicable), at contractually agreed rates with the Company''s authorized distributor. Subscription income from DTH customers is recognized as and when services are rendered to the customer in accordance with the terms of agreements entered into with the service providers

iv) Interest on fixed deposit recorded accordingly rate of interest applied as per deposit form.

v) Foreign pay channel subscription fee received from different nations according to the agreement entered by the parties.

g) Retirement and other employee benefits

1. Provident Fund:-

Retirement benefit in the form of provident fund is a defined contribution scheme. Eligible employees receive benefits from a provident fund, which is defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee''s salary. The contributions are made to the Regional Provident Fund which is charged to the Statement of Profit and Loss as incurred.

The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes the contribution payable to the provident fund scheme as expenditure when the employee renders the related service.

2. Gratuity:-

I. The Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible employees. The plan provides a lump sum payment to vested employees at retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months.

II. Vesting occurs upon completion of five years of service. The Company has obtained insurance policies with the Life Insurance Corporation of India (LIC) and makes an annual contribution to LIC for amounts notified by LIC. The Company accounts for gratuity benefits payable in future based on an independent external actuarial valuation carried out at the end of the year using the projected unit credit method. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they arise.

h) Taxes:-

Tax expense comprises current and deferred tax.

1) Current Income Tax:-

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.

2) Deferred Tax:-

Deferred income tax is provided in full, using the balance sheet method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. 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. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

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.

i) Earnings Per Share:-

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the period. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period, except when the results would be anti-dilutive.

j) Cash & Cash Equivalents:-

I. Cash and cash equivalents in the balance sheet comprise cash balance available at both savings & current accounts, Net outstanding Bank overdrafts Cash in hand and long term deposits made in the past years are considered as integral part of the company''s cash & cash equivalents.

II. For the purpose of presentation of cash flow statements, cash & cash equivalents include cash in hand & available cash in the bank, others as defined above.

K) Foreign Currency Transactions:-

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the company''s functional currency (INR). Foreign currency transactions are recorded at the exchange rates as on the date of the transaction and the exchange difference arising from foreign currency transactions is dealt with in both Profit and Loss account and also in Balance sheet as the case may be. The company has availed a Term loan in Foreign currency whose outstanding as on 31st March, 2018 is Rs.60,09,902/- This amount is not hedged by any derivative instrument. However the company is earning foreign currency on a consistent basis which would be able to cover this risk in unhedged foreign currency exposure.

L) Impairment of Property, plant and equipment / intangible assets:-

The carrying amounts of the Company''s property, plant and equipment and intangible assets are reviewed at each reporting date to determine whether there is any indication of impairment. If there are indicators of impairment, an assessment is made to determine whether the asset''s carrying value exceeds its recoverable amount. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Impairment is recognized in statement of profit and loss whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. The recoverable amount is the higher of net selling price, defined as the fair value less costs to sell, and value in use. 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 rates and risks specific to the asset.

An impairment loss for an individual asset or cash generating unit are reversed if there has been a change in estimates used to determine the recoverable amount since the last impairment loss was recognized and is only reversed to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Impairment losses were recognized in the statement of profit and loss.

M) Inventory:-

Usually company having inventory in serial content procured from the other parties. The value of inventory includes cost of content bought from the content provider & cost of dubbing charges for conversion of content in to local regional language. Company has calculated the value of inventory based on the available period of usage of serial content as per the agreement entered by the service provider & Raj Television Network Limited.

N) Intangible Assets:-

Cost of acquisition of intangible & any other direct costs measured at initial recognition cost of intangible asset. Usually the value of intangible asset calculated at initial recognition cost other impairment loss, if any. As per Ind AS, value of film rights considered as intangible from the FY 2017-18.Company has calculated the amortization cost over the period of useful life of the film.

O) Segment Reporting:-

As per Ind AS 108, company shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. But Raj Television Network Limited doesn''t have any reportable business or Geographical segment types as mentioned in the Ind AS.

P) Events after the reporting period:-

Ind AS-10 has disclose impact about the entity shall incur any events either favourable or unfavourable that occur between the end of the reporting period and the date when the financial statements are approved by the Board of Directors in case of a company, and, by the corresponding approving authority in case of any other entity for issue. There are no material events occurred after the reporting period, which requires adjustment to Assets / Liabilities as on March 31, 2018.

Q) Provisions, Contingent Liabilities & Assets:-

1) Provisions: A provision is recognized when the Company has a present obligation as a result of 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. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. The expense relating to a provision is presented in the statement of profit and loss.

2) Contingent Liabilities & Assets:

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

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Mar 31, 2016

1. Company Overview

The company was incorporated vide CIN. L92490TN1994PLC027709 dated 3^rd June 1994 issued by Registrar of Companies Chennai, Tamil Nadu.

The Company''s shares are listed on the Bombay stock exchange (BSE) and the National stock exchange (NSE) Limited. The company currently operates television channels in three south Indian languages predominantly to viewers in Tamil Nadu and Karnataka and also in Andhra Pradesh. The Company''s flagship channel is Raj TV.

2. Significant Accounting Policies

2.1 Basis of Accounting

The financial statements are prepared on going concern basis in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) and comply in all material aspects with its accounting standards specified under Section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those of previous year.

2.2 Use of Estimates, Assumption & Accounting Judgments

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent gain or loss at the date of financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could defer from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2.3 Classification of Assets and Liabilities

Schedule III to the Companies Act, 2013 requires assets and liabilities to be classified as either Current or Non-current.

(a) An asset shall be classified as current when it satisfies any of the following criteria:

(i) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is expected to be realized within twelve months after the reporting date; or

(iv) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

(b) All assets other than current assets shall be classified as non-current.

(c) A liability shall be classified as current when it satisfies any of the following criteria:

(i) it is expected to be settled in the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is due to be settled within twelve months after the reporting date; or

(iv) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(d) All liabilities other than current liabilities shall be classified as non-current.

2.4 Operating Cycle

An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. The Company has ascertained the operating cycle as twelve months for the purpose of current or Non-current classification of assets and liabilities.

2.5 Fixed Assets

(a) Fixed assets are stated at their original cost of acquisition and installation less accumulated depreciation, amortization and impairment losses, if any. Cost comprises of the purchase price and any other directly attributable cost of bringing the asset to its working condition for its intended use.

(b) Depreciation is provided on the straight-line method (SLM) using useful life prescribed in Part C of Schedule II of the Companies Act, 2013. Depreciation for asset purchased during a period is proportionately charged.Assets costing less than Rs.5,000/- each is fully depreciated in the year of capitalization. The useful life of the following class of assets specified in the Part "C" of Schedule II of the Companies Act, 2013 are as follows:

2.6 Cash and Cash Equivalents

Cash and Cash equivalent comprises of Cash on Hand, Cash at bank and Demand Deposit with banks.

2.7 Cash Flow Statement

Cash flows are reported using the Indirect Method, whereby profit before tax is adjusted for the effects of transaction of a non -cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The Cash flow from Operating, Investing and financing activities of the company are segregated.

2.8 Inventory

Inventories comprises of films, TV Serials and other media contents which are not telecasted during the year, which are valued at cost.

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Mar 31, 2015

1. Company Information

The company was incorporated vide CIN No. L92490TN1994PLC027709 dated 03rd June1994 issued by Registrar of Companies, Chennai, Tamil Nadu.

The Company is listed on the Bombay stock exchange (BSE) and the National stock exchange(NSE) in India. The company currently operates television channels in three south Indian languages predominantly to viewers in Tamilnadu and Karnataka and also in Andhra Pradesh. The Company's flagship channel is Raj TV.

2.1 Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under Section 133 of the Companies Act 2013 ("the 2013 Act") read with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provision of Act to the extent notified. The Financial Statements have been prepared on accrual basis under historical cost convention (except on revaluation of land). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act 2013.

The Financial Statement are Presented in Indian Rupees

2.2. Estimates & Assumption, Accounting Judgments

The preparation of financial requires management to make estimates and assumptions that affect the reported amount of assets and liabili- ties, disclosure of contingent gain or loss at the date of financial statements and the reported amounts of revenue and expenses during the reported period. The estimates and assumptions used in the accompanying financial statements are based upon the management's evaluation of the relevant forecast and circumstances as of the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumption are reviewed on ongoing basis. Revision of accounting estimates recognized in the year in which estimated revised and future year affected.

2.3 Tangible Fixed Assets

Tangible Fixed Assets are accounted at their original cost inclusive of installation and other incidental expenses directly attributable to the asset till it is put to use. Fixed Assets are stated at cost, after reducing the accumulated depreciation till the balance sheet date. Cost includes taxes, duties, freight and incidental expenses relating to acquisition and installation of fixed assets. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from existing assets beyond its previously assessed standard of performance.

Assets not ready for their intended use are shown as Capital Work -in-Progress

2.4 Depreciation and Amortization

The company has revised its policy of providing depreciation on fixed assets effective from 1st April 2014.The depreciation for the year has been provided on Straight Line Method (SLM) on the basis of useful life specified in the Schedule II to the Companies Act, 2013 as against Straight Line Method (SLM) applying the rates, as prescribed in Schedule XIV to the Companies Act, 1956. The carrying amounts of various tangible fixed assets as at 1st April 2014 amount to Rs.707.11 lacs has been recognized in the opening balance of retained earnings where the useful of an asset is Nil. In other cases, the carrying amounts as on 1st April 2014 have been depreciated over the remaining useful life of the asset as per Schedule II. As a result of this change, the depreciation charge for the year ended 31st March, 2015 is higher by Rs.237.76 lacs

The useful life of the assets as given in the Sched- ule II to the companies Act,2013 as follows

Category of assets Useful life

Plant and machinery 13 Years

Vehicles 10 Years

Computer 3 Years

Building 30 Years

Furniture and fixtures 10 Years

Assets costing less than Rs.5, 000 each is fully depreciated in the year of capitalization

2.5 Cash and Cash Equivalents

Cash and Cash equivalent comprises of Cash on Hand, Cash at bank and Demand Deposit with banks.

2.6 Cash Flow Statement

Cash flow statement has been prepared as per Indirect Method set out in AS-3 prescribed in Companies (Accounting Standards) Rules, 2014.

2.7. Inventory

Inventories comprises films not telecast are valued at lower of cost and net realizable value.

2.8. Revenue Recognition

Broadcasting services - Advertisement Revenue is recognized when the related advertisement or commercial is telecast.

Subscription revenue is recognized on completion of service.

Sales comprise amounts invoiced to customers for services provided net of discounts.

Sale is recognized when the risk and rewards of ownership are passed onto the Customers.

Other Revenue/Income is generally accounted in accrual as they are earned.

2.9. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates as on the date of the transaction and the exchange difference arising from foreign currency transaction is dealt with in Profit and Loss account.

The difference between the forward rate and the exchange rate at the inception of a forward exchange contract is recognized as income or expense over the life of the contract.

Monetary items denominated in foreign currency and outstanding at the balance sheet date are translated at the exchange rate ruling on that date. Exchange differences on foreign exchange transactions other than those relating to fixed assets are recognized in the profit and loss account. Any gain/loss on exchange fluctuation on the date of payment of expenditure incurred for acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

2.10. Provision and Contingencies

A provision is recognized in the balance sheet when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These are reviewed at each year end date and adjusted to reflect the best current estimate.

2.11. Earnings Per Share:

Basic earnings per shares is arrived at based on net profit / (loss) after taxation available to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted Earnings per share arrived by dividing the adjusted profit / (loss) after tax by the weighted average number of equity shares for arriving basic earnings per share plus the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares, if any.

2.12 Taxes on Income:

Tax expenses provision comprises of Current tax& Deferred Tax.

Current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws and provision of Income Tax Act, 1961.

Deferred tax is recognized, subject to consideration of prudence, on timing difference, being the difference between taxable income and account- ing income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates. Deferred tax Assets arising from timing differences are recognized to the extent there is a reasonable certainty that these would be realized in future.

2.13 Retirement Benefits:

i. Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

ii. Gratuity liability is a defined benefit obligation. The cost of providing benefits under the plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss.

2.14 Prior Period Items:

Income or Expenses which arise in the current period as a result of change in the preparation of the financial statements of one or more prior periods is shown as "Prior Period Item".

2.15 Investments:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an invest- ment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

2.16 Impairment of Assets:

The Carrying amount of assets are reviewed at Balance Sheet date, if there is any indication of impairment based on internal / external factors. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to profit and Loss Account in the period in which an asset is identified as impaired. The recoverable amount is greater of the asset's net selling Price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value. A previously recognized impairment loss is further provided or reversed depending on change in circumstances.

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Mar 31, 2014

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under Section 211 (3C) of the Companies Act 1956 ("the 1956 Act") {which continues to be applicable in respect of Section 133 of the Companies Act 2013 ("the 2013 Act") in terms of general circular 15/2013 dated 13.09.2013 of the Ministry of Corporate Affairs} and the relevant provision of the 1956 Act/2013 Act as applicable. The Financial Statements have been prepared on accrual basis under historical cost convention (except on revaluation of land). All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act 1956.The Financial Statement are Presented in Indian Rupees

2.2. ESTIMATES & ASSUMPTION, ACCOUNTING JUDGMENTS

The preparation of financial requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent gain or loss at the date of financial statements and the reported amounts of revenue and expenses during the reported period. The estimates and assumptions used in the accompanying financial statements are based upon the management''s evaluation of the relevant forecast and circumstances as of the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumption are reviewed on ongoing basis. Revision of accounting estimates recognized in the year in which estimated revised and future year affected.

2.3 TANGIBLE FIXED ASSETS

Tangible Fixed Assets are accounted at their original cost inclusive of installation and other incidental expenses directly attributable to the asset till it is put to use. Fixed Assets are stated at cost, after reducing the accumulated depreciation till the balance sheet date. Cost includes taxes, duties, freight and incidental expenses relating to acquisition and installation of fixed assets. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from existing assets beyond its previously assessed standard of performance. Assets are not ready for their intended use are shown as Capital Work -in-Progress

2.4 DEPRECIATION AND AMORTIZATION

Depreciation on fixed asset is provided as per Straight Line Method (SLM) applying the rates, as prescribed in Schedule XIV to the Companies Act, 1956. The Depreciation Rates are shown below:

The rates adopted are higher than or equal to the rates specified in Schedule XIV. Depreciation on Assets acquired/disposed off during the year is provided on pro-rata basis with reference to the date on which asset put into use.

Particulars Percent

Building 1.63%

Plant and Machinery 4.75%

Furniture and Fixtures 6.33%

Vehicles 9.50%

Computers 16.21%

Assets costing less than Rs.5,000 each is fully depreciated in the year of capitalization Depreciation on fixed asset based on usability, and their condition as per estimates of the management wherever necessary.

2.5 CASH AND CASH EQUIVALENTS

Cash and Cash equivalent comprises of Cash on Hand and Demand Deposit with banks.

2.6 CASH FLOW STATEMENT

Cash flow statement has been prepared as per Indirect Method set out in AS-3 prescribed inCompanies (Accounting Standards) Rules, 2006.

2.8. INVENTORY

Inventories comprises films not telecasted are valued at lower of cost and net realizable value.

2.9. REVENUE RECOGNITION

Broadcasting services - Advertisement Revenue is recognized when the related advertisement or commercial is telecast. Subscription revenue is recognized on completion of service. Sales comprise amounts invoiced to customers for services provided net of discounts.

Sale is recognized when the risk and rewards of ownership are passed onto the Customers. Other Revenue/Income is generally accounted in accrual as they are earned.

2.10. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the exchange rates as on the date of the transaction and the exchange difference arising from foreign currency transaction is dealt with in Profit and Loss account.

The difference between the forward rate and the exchange rate at the inception of a forward exchange contract is recognized as income or expense over the life of the contract.

Monetary items denominated in foreign currency and outstanding at the balance sheet date are translated at the exchange rate ruling on that date. Exchange differences on foreign exchange transactions other than those relating to fixed assets are recognized in the profit and loss account. Any gain/loss on exchange fluctuation on the date of payment of expenditure incurred for acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

2.11. PROVISION AND CONTINGENCIES:

A provision is recognized in the balance sheet when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. This are reviewed at each year end date and adjusted to reflect the best current estimate.

2.12. EARNINGS PER SHARE:

Earning per equity shares is arrived at based on net profit / (loss) after taxation available to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted Earnings per share arrived by dividing the adjusted profit / (loss) after tax by the weighted average number of equity shares for arriving basic earnings per share plus the weighted average number of equity shares which have been issued for conversion of all dilutive potential equity shares, if any.

2.13 TAXES ON INCOME:

Tax expenses provision comprises of Current tax & Deferred Tax. Current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws and provision of Income Tax Act, 1961.

Deferred tax is recognized, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates. Deferred tax Assets arising from timing differences are recognized to the extent there is a reasonable certainty that these would be realized in future.

2.14 RETIREMENT BENEFITS:

i ) Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

ii ) Gratuity liability is a defined benefit obligation. The cost of providing benefits under the plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss.

2.15 PRIOR PERIOD ITEMS:

Income or Expenses which arise in the current period as a result of change in the preparation of the financial statements of one or more prior periods is shown as "Prior Period Item".

2.16 INVESTMENTS:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

2.17 IMPAIRMENT OF ASSETS:

The Carrying amount of assets are reviewed at Balance Sheet date, if there is any indication of impairment based on internal / external factors. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to profit and Loss Account in the period in which an asset is identified as impaired. The recoverable amount is greater of the asset''s net selling Price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value. A previously recognized impairment loss is further provided or reversed depending on change in circumstances.

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Mar 31, 2013

1. Accounting Convention

a) These Financial Statements have been prepared in accordance with the generally accepted accounting principles in India under the Historical cost convention. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

b) The company follows Mercantile System of accounting and recognizes items of income '' and expenditure on accrual basis except those with significant uncertainties.

2. Revenue Recognition

a) Broadcasting services - Advertisement Revenue is recognised when the related advertisement or commercial is telecast.

b) Subscription revenue is recognised on completion of service.

c) Sales comprise amounts invoiced to customers for services provided net of discounts.

d) Sale are recognised when the risk and rewards of ownership are passed onto the Customers

e) Interest Income is recognised on time proportionate basis taking into account the amount outstanding and the rate applicable.

3. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs, if any, relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956.

5 Inventories

Inventories comprises films not telecasted are valued at lower of cost or net realisable value.

6 Transaction in Foreign Currencies

a) Export transactions denominated in Foreign currencies are normally recorded as per actual export realisation.

b) The difference between the forward rate and the exchange rate at the inception of a forward exchange contract is recognised as income or expense over the life of the contract.

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currency and outstanding at the balance sheet date are translated at the exchange rate ruling on that date. Exchange differences on foreign exchange transactions other than those relating to fixed assets are recognised in the profit and loss account. Any gain/loss on exchange fluctuation on the date of payment of expenditure incurred for acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

7 Retirement Benefits

a) Retirement benefits in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund,

b) Gratuity liability is a defined benefit obligation. The cost of providing benefits under the plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss.

8 Segment reporting

The company has no reportable Business or Geographical segment.

9 Taxes on Income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates. Deferred tax Assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realised in future.

10 Earning Per Share

The Company reports basic and diluted earnings per equity share in accordance with AS-20, ''Earnings Per Share''.

a) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

11 Prior Period Item

Income or Expenses which arise in the current period as a result of change in the preparation of the financial statements of one or more prior periods is shown as "Prior Period Item".

12 Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

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Mar 31, 2012

1. Accounting Convention

a) These Financial Statements have been prepared in accordance with the generally accepted accounting principles in India under the Historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211 (3c) [ Companies Accounting Standards Rules, 2006 as amended and the other relevant provisions of the companies Act, 1956 and the guidelines issued by the Securities and Exchange Board of India( SEBI).

b) The company follows Mercantile System of accounting and recognizes items of income and expenditure on accrual basis except those with significant uncertainties.

2. Revenue Recognition

a) Broadcasting services - Advertisement Revenue is recognized when the related advertisement or commercial is telecast.

b) Subscription revenue is recognized on completion of service.

c) Sales comprise amounts invoiced to customers for services provided net of discounts.

d) Sale are recognized when the risk and rewards of ownership are passed onto the Customers.

e) Interest Income is recognized on time proportionate basis taking into account the amount outstanding and the rate applicable.

3. Fixed Assets

Fixed Assets are stated at their Cost. Cost includes capital cost, freight, installation cost, duties and taxes and other incidental expenses incurred during the construction / installation stage attributable to bringing the assets to working condition for its intended use.

4. Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956.

5 Inventories

Inventories comprises films not telecasted are valued at lower of cost and net realizable value.

6 Transaction in Foreign Currencies

a) Export transactions denominated in Foreign currencies are normally recorded as per actual export realization.

b) The difference between the forward rate and the exchange rate at the inception of a forward exchange contract is recognized as income or expense over the life of the contract.

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currency and outstanding at the balance sheet date are translated at the exchange rate ruling on that date. Exchange differences on foreign exchange transactions other than those relating to fixed assets are recognized in the profit and loss account. Any gain/loss on exchange fluctuation on the date of payment of expenditure incurred for acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

7 Retirement Benefits

a) Contribution towards Provident Fund and other recognized funds are charged to Profit and loss Account.

b) The Company contributed to gratuity fund based on Company's Policy.

8 Segment reporting

The company has no reportable Business or Geographical segment.

9 Taxes on Income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognized, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates. Deferred tax Assets arising from timing differences are recognized to the extent there is a reasonable certainty that these would be realized in future.

10 Earnings Per Share

The Company reports basic and diluted earnings per equity share in accordance with AS-20, 'Earnings Per Share.

a) Basic Earnings Per Share is computed and disclosed using the weighted average number of common shares outstanding during the year.

b) Diluted Earnings per Share is computed and disclosed using the weighted average number of common and diluted equity shares outstanding during the year.

11 Prior Period Item

Income or Expenses which arise in the current period as a result of change in the preparation of the financial statements of one or more prior periods is shown as "Prior Period Item".

12 Investments

Long-term Investments are carried at cost. However provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

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Mar 31, 2011

1. Accounting Convention

a) The financial statements are prepared under the historical cost convention, on a going concern basis in accordance with the generally accepted accounting policies and in accordance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

b) The company follows Mercantile System of accounting and recognizes items of income and expenditure on accrual basis except those with significant uncertainties.

2. Revenue Recognition

a) Broadcasting services - Advertisement Revenue is recognised when the related advertisement or commercial is telecast.

b) Subscription revenue is recognised on completion of service.

c) Sales comprise amounts invoiced to customers for services provided net of discounts.

d) Sale are recognised when the risk and rewards of ownership are passed onto the Customers.

e) Interest Income is recognised on time proportionate basis taking into account the amount outstanding and the rate applicable.

3. Fixed Assets

Fixed Assets are stated at their Cost. Cost includes capital cost, freight, installation cost, duties and taxes and other incidental expenses incurred during the construction / installation stage attributable to bringing the assets to working condition for its intended use.

4. Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956.

5. Inventories

Inventories comprises films not telecasted are valued at lower of cost and net realisable value.

6. Transaction in Foreign Currencies

a) Export transactions denominated in Foreign currencies are normally recorded as per actual export realisation.

b) The difference between the forward rate and the exchange rate at the inception of a forward exchange contract is recognised as income or expense over the life of the contract.

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currency and outstanding at the balance sheet date are translated at the exchange rate ruling on that date.

7. Retirement Benefits

a) Retirement benefit in the form of provident fund is a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

b) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

8. Segment reporting

The company has no reportable Business or Geographical segment.

9. Taxes on Income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measure.

10. Earning Per Share

The Company reports basic and diluted earnings per equity share in accordance with AS-20, 'Earnings Per Share'.

a) Basic Earning Per Share is computed and disclosed using the weighted average number of common shares outstanding during the year.

b) Diluted Earning per Share is computed and disclosed using the weighted average number of common and diluted equity shares outstanding during the year.

11. Prior Period Item

Income or Expenses which arise in the current period as a result of change in the preparation of the financial statements of one or more prior periods is shown as "Prior Period Item".

12. Investments

Long-term Investments are carried at cost. However provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.

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Mar 31, 2010

1. Accounting Convention

a) The financial statements are prepared under the historical cost convention, on a going concern basis in accordance with the generally accepted accounting policies and in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

b) The company follows Mercantile System of accounting and recognizes items of income and expenditure on accrual basis except those with significant uncertainties.

2. Revenue Recognition

a) Broadcasting services - Advertisement Revenue is recognised when the related advertisement or commercial is telecast.

b) Subscription revenue is recognised on completion of service.

c) Sales comprise amounts invoiced to customers for services provided net of discounts.

d) Sale are recognised when the risk and rewards of ownership are passed onto the Customers.

e) Interest Income is recognised on time proportionate basis taking into account the amount outstanding and the rate applicable.

3. Fixed Assets

Fixed Assets are stated at their Cost. Cost includes capital cost, freight, installation cost, duties and taxes and other incidental expenses incurred during the construction / installation stage attributable to bringing the assets to working condition for its indended use.

4. Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956.

5 Inventories

Inventories comprises films not telecasted are valued at lower of cost and net realisable value.

6 Transaction in Foreign Currencies

a) Export transactions denominated in Foreign currencies are normally recorded as per actual export realisation.

b) The difference between the forward rate and the exchange rate at the inception of a forward exchange contract is recognised as income or expense over the life of the contract.

Transactions in foreign currencies are recorded atthe exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currency and outstanding at the balance sheet date are translated atthe exchange rate ruling on that date.

7 Retirement Benefits

a) Contribution towards Provident Fund and other recognised funds are charged to Profit and loss Account.

b) The Company contributed Rs.5,12,524/- to gratuity fund based on Companys Policy.

8 Segment reporting

The company has no reportable Business or Geographical segment.

9 Taxes on Income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subjectto consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measure.

10 Miscellaneous Expenditure

Miscellaneous Expenditure include expenses incurred for Initial Public offer and are amortised over a period of 5 years.

11 Earning Per Share

The Company reports basic and diluted earnings per equity share in accordance with AS-2Q, Earnings Per Share.

a) Basic Earning Per Share is computed and disclosed using the weighted average number of common shares outstanding during the year.

b) Diluted Earning per Share is computed and disclosed using the weighted average number of common and diluted equity shares outstanding during the year.

12 Prior Period Item

Income or Expenses which arise in the current period as a result of change in the preparation of the financial statements of one or more prior periods is shown as "Prior Period Item".

13 Investments

Long-term Investments are carried at cost. The company hasnt provided any provision for increase or decrease in value of the investment.