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Notes to Accounts of Raj Television Network Ltd.

Mar 31, 2016

  1. A. Income from Broad Casting Operation

Advertisement Revenue is recognized when the related advertisement or commercials are telecasted. Subscription revenue is recognized on completion of service. Sales comprises of amount invoiced net of discount to the customer for the services provided. Sale is recognized, when the significant risks and rewards have been transferred to the customers in accordance with the agreed terms.

B. Income from Sale of film rights

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

C. Income from Other Operation

Other Income is generally accounted on accrual basis and also based on time proportion basis taking into account the applicable terms.

1. 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.

2.Prrovision and Contingencies

A provision is recognized if, as a result of a past event, the company has a present legal obligation that is reasonably estimate, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. When there is an obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

3. Earnings per Share

Basic earnings per share are computed by dividing the net profit after-tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilute potential equity shares.

The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilute potential equity shares are deemed convened as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

4 Taxation

Tax expense comprises current and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and tax laws enacted or substantially enacted as at the Balance Sheet date.

Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.

Minimum Alternative Tax (''MAT'') credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income-tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the guidance note issued by Institute of Chartered Accountants of India (''ICAI''), the said asset is created by way of a credit to the statement of profit and loss. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income-tax during the specified period.

5 Employee Benefits

A. Short-term Employee Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

B. Post-Employment Benefits

6. Provident Fund

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 Commissioner (RPFC) which is charged to the Statement of Profit and Loss as incurred. In respect of contribution to RPFC, the Company has no further obligations beyond making the contribution, and hence, such employee benefit plan is classified as Defined Contribution Plan. The Company''s contribution is recognized as an expense in the Statement of Profit and Loss.

7. 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.

8 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".

9 Impairment of Assets

The Management periodically assesses using external and internal sources, whether there is an indication that an asset may, be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount.

The recoverable amount is the higher of the assets net selling price or value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized.

The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

F. Segment Reporting

The company has no reportable Business or Geographical segment as defined in Accounting Standard 17 " Segment Reporting " issued by the Institute of Chartered Accountants of India.

G. Deferred Tax

Deferred Tax Liability recognized for the Financial Year is Rs.68,66,088/-

H. Revaluation of Land

Accounting Standard (AS) 10 on ''Accounting for Fixed Assets'' permits the revaluation of fixed assets and inter alia, requires that "An increase in net book value arising on revaluation of fixed assets should be credited directly to owners'' interests under the head of revaluation reserve, except that, to the extent that such increase is related to and not greater than a decrease arising on revaluation previously recorded as a charge to the profit and loss statement, it may be credited to the profit and loss statement." During the F.Y 2013-14 Land was revalued and the increase in Net Book Value arising on revaluation of Land to the extent of Rs.4,420,45,618/- was credited to Revaluation Reserve.

I. Corporate social responsibility

As per Section 135 of the Companies Act, 2013, a corporate social responsibility (CSR) committee has been formed by the Company. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

J. Trade Debtors and Creditors

The balances of sundry creditors and Debtors as shown in the balance sheet are subject to reconciliation & confirmation.

K. Commitments and contingencies

There are no Contingent Liabilities as on the Balance sheet date.

L. Events after Balance Sheet Date

There is no material events occurred after the balance sheet date, which requires adjustment to assets / liabilities as of March 31, 2016.

M. General Notes

a) All Amount mentioned in financial statement represents for the year ended 31.03.2016

b) Previous year figures have been rearranged wherever necessary to conform to Current year Classification of accounts

c) All amounts in the financial statements have been rounded off to the nearest Indian rupee.

d) Based on the information and explanation given by the company there were no dues to Micro, Small and Medium Scale industries.


Mar 31, 2015

A. Segment Reporting

The company has no reportable Business or Geographical segment as defined in Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India.

B. Revaluation of Land

Accounting Standard (AS) 10 on Accounting for Fixed Assets' permits the revaluation of fixed assets and, inter alia, requires that "An increase in net book value arising on revaluation of fixed assets should be credited directly to owners' interests under the head of revaluation reserve, except that, to the extent that such increase is related to and not greater than a decrease arising on revaluation previously recorded as a charge to the profit and loss statement, it may be credited to the profit and loss statement."

During the F.Y 2013-14 - Land was revalued and the increase in Net Book Value arising on revaluation of Land to the extent of Rs.442,045,618/- was credited to Revaluation Reserve.

C. Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a corporate social responsibility (CSR) committee has been formed by the Company. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

D. Trade Debtors and Creditors

The balances of sundry creditors and Debtors as shown in the balance sheet are subject to reconciliation & confirmation.

E. Commitments and Contingencies

There are no Contingent Liabilities as on the Balance sheet date.

F. Events after Balance Sheet Date

There are no material events occurred after the balance sheet date, which requires adjustment to assets / liabilities as of March 31, 2015.

G. General Notes

a)All Amount mentioned in financial statement represents for the year ended 31.03.2015.

b)Previous year figures have been rearranged wherever necessary to conform to Current year Classification of accounts.

c)All amounts in the financial statements have been rounded off to the nearest Indian rupee.

d) Based on the information and explanation given by the company there were no dues to Micro, small Scale industries.


Mar 31, 2014

A EARNINGS PER SHARE:

*** In the Current year 1,29,78,336 equity shares of Rupees 10/- face value were split into 2,59,56,672 shares of Rupees 5/- face value and 2,59,56,672 equity shares were allotted as fully paid Bonus shares by utilisation of Securities Premium Account.

B RELATED PARTY DISCLOSURES:

I. DIRECTORS Mr.M.Raajhendhran Managing Director

Mr.M.Ravindran Executive Director

Mr.M.Rajarathinam Executive Director

Mr.M.Raghunathan Executive Director

C SEGMENT REPORTING

The company has no reportable Business or Geographical segment as defined in Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India.

D REVALUATION OF LAND

Accounting Standard (AS) 10 on ''Accounting for Fixed Assets'' permits the revaluation of fixed assets and, inter alia, requires that "An increase in net book value arising on revaluation of fixed assets should be credited directly to owners'' interests under the head of revaluation reserve, except that, to the extent that such increase is related to and not greater than a decrease arising on revaluation previously recorded as a charge to the profit and loss statement, it may be credited to the profit and loss statement."

During the Financial Year – Land was revalued and the increase in Net Book Value arising on revaluation of Land to the extent of Rs.442,045,618/- was credited to Revaluation Reserve.

E TRADE DEBTORS AND CREDITORS

The balances of sundry creditors and Debtors as shown in the balance sheet are subject to reconciliation & confirmation.

F COMMITMENTS AND CONTINGENCIES

There are no Contingent Liabilities as on the Balance sheet date.

G EVENTS AFTER BALANCE SHEET DATE

There are no material events occurred after the balance sheet date, which requires adjustment to assets / liabilities as of March 31, 2014

H GENERAL NOTES

a) All Amount mentioned in financial statement represents for the year ended 31.03.2014

b) Previous year figures have been rearranged wherever necessary to confirm to Current year classification of accounts as per Revised Schedule-VI

c) All amounts in the financial statements have been rounded off to the nearest Indian rupee.

d) Based on the information and explanation given by the company there were no dues to Micro, small scale industries.


Mar 31, 2013

1. Prior Year Comparatives

a) Previous year''s figures have been regrouped and reclassified wherever necessary to make them comparable to current year''s figures.

b) Figures in brackets pertain to previous year.

2. Fixed Assets.

Fixed Assets are valued and shown adopting the following basis:

a) Fixed assets acquired are shown at the cost of acquisition.

b) Fixed assets aquired under Hire Purchase are shown at their principal cost excluding the interest cost. "

3. Depreciation

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

4. Leases

The company has not taken or leased out any building or asset on operating lease or finance lease.

5. Effects of Changes in Foreign Exchange Rates

a) 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

b) The change in value of Foreign Currency liability due to increase or decrease in the exchange rate is adjusted against appropriate fixed assets.

6. Film and Program Broadcasting rights

Cost relating to film and program broadcasting rights are fully expensed on the date of first telecast of the film or program.

7. Trade Payables

a) Trade Payables includes (i)Rs.NIL (Previous Year Rs.Nil) due to micro and small enterprises registered under the Micro, small and Medium Enteprises Development Act, 2006 (MSME) and Rs.33,521,409 (Previous Year Rs.20,521,662/- due to other parties.

b) No Interest Paid/Payable during the year to any enterprises registered under the MSME

c) The above Information has been determined to the extent such parties could be identified on the basis of the information available with the company regarding the status of suppliers under the MSME.

8. Employee benefit plans - Gratuity

The gratuity liability arises on retirement, withdrawal, resignation or death of an employee. The aforesaid liability is calculated on the basis of fifteen days salary (i.e. last drawn salary plus dearness allowance) for each completed year of service subject to completion of five years of service.The following table set out the funded / unfunded status of the retirement benefits plans and the amount recognised in the financial statements:

As per Accounting Standard 15 "Employee Benefits", the disclosures are as under:

A Defined Benefit Plans

The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave benefits (non funded) is also recognised using the projected unit credit method.

9 Related Party Disclosures

As per Accounting Standard (AS) -18 issued by The Institute of Chartered Accoutants of India, the Company''s related parties are disclosed below:

A. Related Parties :

a) Other Related parties with whom transactions have taken place during the year and balance outstanding as on the last day of the year.

M/s. Vissa Television Network Limited Group Company

b) Directors / Key Management Personnel

Mr.M.Raajhendhran Managing Director

Mr.M.Ravindran Executive Director

Mr.M.Rajarathinam Executive Director

Mr.M.Raghunathan Executive Director

10. Earnings per share

Basic earnings per equity share has been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the period. Diluted earnings per equity share has been computed using the weighted average number of equity

11. Contingent Liability (Amt. in Rs.)

Particulars Year ended Period ended 31.03.2013 31.03.2012

a) Bank Guarantee given for differential amount of Customs duty in respect of machinery imported under EPCG scheme. Nil 7,733,300

b) Legal cases against the Company Unascertainable Unascertainable

12. Balances of the Sundry Debtors and Sundry Creditors are subject to confirmation.


Mar 31, 2012

1. Prior Year Comparatives

a) Previous year's figures have been regrouped and reclassified wherever necessary to make them comparable to current year's figures.

b) Figures in brackets pertain to previous year.

2. Secured Loans

A. Cash Credit with Banks are secured by

a) Hypothecation of Book Debts of the Company.

b) Hypothecation of Property at Old No.13 A, Poes Road, Second Street, Teynampet, Chennai -18.

3. Fixed Assets.

Fixed Assets are valued and shown adopting the following basis:

a) Fixed assets acquired are shown at the cost of acquisition.

b) Fixed assets aquired under Hire Purchase are shown at their principal cost excluding the interest cost.

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. Effects of Changes in Foreign Exchange Rates

a) 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

b) The change in value of Foreign Currency liability due to increase or decrease in the exchange rate is adjusted against appropriate fixed assets.

6. Film and Program Broadcasting rights

Cost relating to film and program broadcasting rights are fully expensed on the date of first telecast of the film or program.

7. Trade Payables

a) Trade Payables includes (i)Rs.NIL (Previous Year Rs.Nil) due to micro and small enterprises registered under the Micro, small and Medium Enterprises Development Act, 2006 (MSME) and Rs.20,752,369/- (Previous Year Rs. 35,414,746/- due to other parties.

b) No Interest Paid/Payable during the year to any enterprises registered under the MSME

c) The above Information has been determined to the extent such parties could be identified on the basis of the information available with the company regarding the status of suppliers under the MSME.

8. Earnings per share

Basic earnings per equity share has been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the period. Diluted earnings per equity share has been computed using the weighted average number of equity

9. Balances of the Sundry Debtors and Sundry Creditors are subject to confirmation.


Mar 31, 2011

1. Prior Year Comparatives

a) Previous year's figures have been regrouped and reclassified wherever necessary to make them comparable to current year's figures.

b) Figures in brackets pertain to previous year.

2. Secured Loans

A. Cash Credit with Banks are secured by

a) Hypothecation of Book Debts of the Company.

b) Hypothecation of Property at Old No.13 A, Poes Road, Second Street, Teynampet, Chennai - 18.

c) Hypothecation of Fixed deposits

3. Fixed Assets.

Fixed Assets are valued and shown adopting the following basis:

a) Fixed assets acquired are shown at the cost of acquisition.

b) Fixed assets aquired under Hire Purchase are shown at their principal cost excluding the interest cost.

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. Effects of Changes in Foreign Exchange Rates

a) 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.

b) The change in value of Foreign Currency liability due to increase or decrease in the exchange rate is adjusted against appropriate fixed assets.

6. Film and Program Broadcasting rights

Cost relating to film and program broadcasting rights are fully expensed on the date of first telecast of the film or program.

7. Managerial Remuneration

a) No commission is paid / payable to any director and hence the computation of profits under section 198 / 349 of the Companies Act,1956 is not required.

8. Related Party Disclosures

As per Accounting Standard (AS) -18 issued by The Institute of Chartered Accoutants of India, the Company's related parties are disclosed below:

A. Related Parties :

a) Other Related parties with whom transactions have taken place during the year and balance outstanding as on the last day of the year.

M/S.Vissa Television Network Limited Group Company

b) Directors / Key Management Personnel

Mr.M.Raajhendhran Managing Director

Mr.M.Ravindran Executive Director

Mr.M.Rajarathinam Executive Director

Mr.M.Raghunathan Executive Director

9. Sundry Creditors are subject to confirmation.

10. Expenditure of Exceptional Nature :

During the year Company has written off bad debts of Rs. 1628.79 lakhs, which the Board of Directors at its meeting held on 11th April 2011 had approved unanimously. This represents due from a MSO operator and cable operators which could not be recovered. This has an caused operating loss for the financial year 2010-11.


Mar 31, 2010

1. Prior Year Comparatives

a) Previous years figures have been regrouped and reclassified wherever necessary to make them comparable to current years figures.

b) Figures in brackets pertain to previous year.

2. Secured Loans

A. Cash Credit with Banks are secured by

a) Hypothecation of Book Debts of the Company.

b) Mortgage of .Property at Old No.13 A, Poes Road, Second Street, Teynampet, Chennai -18.

c) Hypothecation of Fixed deposits

d) The Secured Loans are guaranteed by the Directors of the Company

3. Fixed Assets.

Fixed Assets are valued and shown adopting the following basis:

a) Fixed assets acquired are shown at the cost of acquisition.

b) Fixed assets acquired under Hire Purchase are shown at their principal cost excluding the interest cost.

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. Effects of Changes in Foreign Exchange Rates

a) 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

b) The change in value of Foreign Currency liability due to increase or decrease in the exchange rate is adjusted against appropriate fixed assets.

6. Film and Program Broadcasting rights

Cost relating to film and program broadcasting rights are fully expensed on the date of first telecast of the film or program.

7. Managerial Remuneration

a) No commission is paid / payable to any director and hence the computation of profits under section 198 / 349 of the Companies Act, 1956 is not required.

8. Related Party Disclosures

As per Accounting Standard (AS) -18 issued by The Institute of Chartered Accoutants of India, the Companys related parties are disclosed below:

A) Related parties

a) Other Related parties with whom transactions have taken place during the year and balance outstanding as on the last day of the year.

M/S. Vissa Television Network Limited Group Company

b) Directors / Key Management Personnel

Mr. M.Raajhendhran Managing Director

Mr. M.Ravindran Executive Director

Mr. M.Rajarathinam Executive Director

Mr. M.Raghunathan Executive Director

9. Contingent Liability

Particulars Year ended Year ended

31.03.2010 31.03.2009

a) Bank Guarantee given for differential amount of Customs duty

in respect of machinery imported under EPCG scheme. 7,733,300 7,733,300

b) Legal cases against the Company Unascertainable Unascertainable

10. Balances of the Sundry Debtors and Sundry Creditors are subjectto confirmation.

11 Expenditure of Exceptional Nature

During the year, the company has decided to write off bad debts to the extent of Rs.2057.56 Lakhs, which was due from an MSO operator. And this has caused operating loss for this financial year.