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Accounting Policies of Raj Television Network Ltd. Company

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.


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.


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.


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.


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.


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.

 
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