Mar 31, 2018
1. Corporate information
Sahara One Media And Entertainment Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is a television content provider and also produces and distributes films.
2. Basis of preparation and presentation
The financial statements have been prepared on the historical cost basis except for following assets and liabilities which have been measured at fair value amount:
i) Certain financial assets and liabilities,
ii) Defined benefit plans - plan assets and
The financial statements of the Company have been prepared to comply with the Indian Accounting standards (''Ind AS''), including the rules notified under the relevant provisions of the Companies Act, 2013.
Upto the year ended March 31, 2017, the Company has prepared its financial statements in accordance with the requirement of Indian Generally Accepted Accounting Principles (GAAP), which includes Standards notified under the Companies (Accounting Standards) Rules, 2006 and considered as "Previous GAAP".
These financial statements are the Company''s first Ind AS standalone financial statements.
Company''s financial statements are presented in Indian Rupees (''000), which is also its functional currency.
*Hon''ble Supreme Court vide it''s order dated 4th June, 2014 has directed to defreeze the Fixed Deposit account of the company subject to condition that total proceeds would be transferred to special account opened by the SEBI. Accordingly, the company has transferred an amount of Rs 694,027,883 to Sahara-SEBI Refund account. (refer note 30 for details)
(b) Terms/ rights attached to equity shares
The Company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.
During the year ended 31 March 2018, the amount of per share dividend recognized as distributions to equity shareholders was Nil (31 March 2017: Nil).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
As per records of the company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
3. Gratuity and other post-employment benefit plans:
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.
The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the respective plans. The liability is not funded.
**The above liability pertains to continuing employees and liability of Rs. (''000) 3616.06 pertaining to transferred employees has been shown in note 13 under caption âprovision for gratuity of transferred employeesâ.
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.
Discontinuance Liability
Amount payable upon discontinuance of all employment is for gratuity Rs. (''000) 993.64 and for leave encashment Rs. (''000) 99.37
4. Leases
Operating lease: company as lessee
The Company has entered into operating cancellable lease agreements for its office premises/ Go down for a period of 3-5 years. There are no clauses relating to renewal / escalation. There are no subleases. The lease rental charged during the year is as follows:
5. Segmental Information:
Business Segments:
The Company operating businesses are organized and managed separately according to the nature of services provided, with each segment representing a strategic business unit that serves different markets. The Company principal business is sale of television programmes and motion pictures production and distribution.
The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.
6. Capital and other commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for, are Rs. Nil (31 March 2017: Rs. Nil)
The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company''s financial position and results of operations.
In the Opinion of the Board of Directors, any of the assets other than fixed assets and non-current investments are approximately of the value stated if realized in the ordinary course of the business. The provisions for all known liabilities have adequately been made and are not in excess of the amounts reasonably necessary. There is no contingent liability other than those stated above.
7.In the matter of dispute in respect of repayment of Optionally Fully Convertible Debentures (OFCDs) by two group companies, namely M/s Sahara India Real Corporation Limited & Sahara Housing Investment Corporation Limited, the Hon''ble Supreme Court of India vide its order dated 21-11-2013 had directed that Sahara Group of Companies shall not part with movable and immovable properties and accordingly Security and Exchange Board of India (SEBI) has seized the company''s fixed deposit and Non-current investment. Subsequent to this, Hon''ble Supreme Court vide it''s order dated 4th June, 2014 has directed to defreeze the fixed deposit account of the company subject to condition that total proceeds would be transferred to special account opened by the SEBI. Accordingly, the company has transferred an amount of Rs. (''000) 694,027.88 to Sahara-SEBI refund account. However, the company''s management strongly believes that the money deposited is recoverable and will be received back along with interest, as the amount in Sahara - SEBI refund account is in the shape of fixed deposit. However, the company has not accrued any interest on this amount.
8. Details of dues to micro and small enterprises as defined under the Micro, Small and Medium Enterprises(MSMED) Act, 2006
As per the information available with the Company, no amounts are due to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at 31 March 2018. (31 March 2017: Nil)
36 First time adoption of Ind AS
a) Explanation of transition to Ind AS
These are the Company''s first financial statements prepared in accordance with Ind AS.
The accounting policies have been applied consistently in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the Company''s date of transition). An explanation of how the transition from financial statements prepared in accordance with accounting standards notified under the Section 133 of the Act, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP) to Ind AS has affected the Company''s financial position, financial performance and cash flows is set-out in the following tables and notes:
A) The previous GAAP figures have been reclassified to confirm to Ind As presentation requirement for the purpose of this note.
B) This column include the impact on account of change with respect to transition to Ind AS for the first time."" ii) Reconciliation of total comprehensive income for the year ended 31 March 2017.
9. Previous year''s figures have been regrouped where necessary to conform to this year''s classification.
Mar 31, 2016
(b) Terms/ rights attached to equity shares
The Company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.
During the year ended 31 March 2016, the amount of per share dividend recognized as distributions to equity shareholders was Nil (31 March 2015: Nil).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
As per records of the company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
1. Gratuity and other post-employment benefit plans:
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.
The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.
The expected rate of return on assets is taken on the basis of LIC rate and RBI Deep Discounting Rate.
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.
Related party transactions
The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:
* Includes amount paid before Shri Boney Kapoor became a director of the Company.
^ Shri Boney Kapoor has resigned from the Directorship w.e.f 14.11.2015.
The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.
2. Capital and other commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for, are Rs. Nil (31 March 2015: Rs. Nil)
The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the companyâs financial position and results of operations.
3. In the matter of dispute in respect of repayment of Optionally Fully Convertible Debentures (OFCDs) by two group companies, namely M/s Sahara India Real Corporation Limited & Sahara Housing Investment Corporation Limited, the Honâble Supreme Court of India vide its order dated 21-11-2013 had directed that Sahara Group of Companies shall not part with movable and immovable properties and accordingly Security and Exchange Board of India (SEBI) has seized the companyâs Fixed Deposit and Non Current Investment. Subsequent to this, Honâble Supreme Court vide itâs order dated 4th June, 2014 has directed to defreeze the Fixed Deposit account of the company subject to condition that total proceeds would be transferred to special account opened by the SEBI. Accordingly, the company has transferred an amount of Rs 694,027,883 to Sahara-SEBI Refund account. However, the companyâs management strongly believes that the money deposited is recoverable and will be received back along with interest, as the amount in Sahara - SEBI Refund Account is in the shape of Fixed Deposit. However, the Company has not accrued any interest on this amount.
4. Details of dues to micro and small enterprises as defined under the Micro, Small and Medium Enterprises(MSMED) Act, 2006
As per the information available with the Company, no amounts are due to Micro, Small and Medium enterprises as per MSMED Act, 2006 as at 31 March 2016. (31 March 2015: Nil)
5. Previous yearâs figures have been regrouped where necessary to conform to this yearâs classification.
Mar 31, 2015
1. Gratuity and other post-employment benefit plans:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The following tables summarize the components of net benefit expense
recognized in the statement of profit and loss and the funded status
and amounts recognized in the balance sheet for the respective plans.
Statement of profit and loss
Net employee benefit expense recognized in the employee cost
2. Leases
Operating lease: company as lessee
The Company has entered into operating cancellable lease agreements for
its office premises/ Godown/ aircraft hire for a period of 3-5 years.
There are no clauses relating to renewal / escalation. There are no
subleases. The lease rental charged during the year is as follows:
3. Segmental Information:
Business Segments:
The Company operating businesses are organized and managed separately
according to the nature of services provided, with each segment
representing a strategic business unit that serves different markets.
The Company principal business is sale of television programmers and
motion pictures production and distribution.
4. Related party disclosures
Related parties with whom transactions have taken place during the year
Related party transactions
The following table provides the total amount of transactions that have
been entered into with related parties for the relevant financial year:
5. Capital and other commitments
Estimated amount of contracts remaining to be executed on capital
account and not provided for, are Rs. Nil (31 March 2014: Rs. Nil)
The Company is contesting the demands and the management, including its
tax advisors, believe that its position will likely be upheld in the
appellate process. No tax expense has been accrued in the financial
statements for the tax demand raised. The management believes that the
ultimate outcome of this proceeding will not have a material adverse
effect on the company's financial position and results of operations.
6. In the matter of dispute in respect of repayment of Optionally
Fully Convertible Debentures (OFCDs) by two group companies, namely M/s
Sahara India Real Corporation Limited & Sahara Housing Investment
Corporation Limited, the Hon'ble Supreme Court of India vide its order
dated 21-11-2013 had directed that Sahara Group of Companies shall not
part with movable and immovable properties and accordingly Security and
Exchange Board of India (SEBI) has seized the company's Fixed Deposit
and Non Current Investment. Subsequent to this, Hon'ble Supreme Court
vide it's order dated 4th June, 2014 has directed to defreeze the Fixed
Deposit account of the company subject to condition that total proceeds
would be transferred to special account opened by the SEBI.
Accordingly, the company has transferred an amount of Rs 694,027,883 to
Sahara-SEBI Refund account. However, the company's management strongly
believes that the money deposited is recoverable and will be received
back alongwith interest, as the amount in Sahara - SEBI Refund Account
is in the shape of Fixed Deposit. However, the Company has not accrued
any interest on this amount.
7. Details of dues to micro and small enterprises as defined under the
Micro, Small and Medium Enterprises(MSMED) Act, 2006
As per the information available with the Company, no amounts are due
to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at 31
March 2015. (31 March 2014: Nil)
8. Previous year's figures have been regrouped where necessary to
conform to this year's classification.
Mar 31, 2014
1. Corporate information
Sahara one Media And Entertainment Limited is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. The company is a television content provider and
also produces and distributes films.
2. Basis of preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). 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 financial
statement has been prepared on an accrual basis and under the
historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
(a) Terms/ rights attached to equity shares
The Company has only one class of equity shares having par value of
Rs.10 per share. Each holder of equity shares is entitled to one vote
per share.
During the year ended 31 March 2014, the amount of per share dividend
recognized as distributions to equity shareholders was Nil (31 March
2013: Nil).
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
As per records of the company, including its register of shareholders/
members and other declarations received from shareholders regarding
beneficial interest, the above shareholding represents both legal and
beneficial ownerships of shares.
As per order of Hon''ble Supreme Court of India dated 21-11-2013, SEBI
has attached/freezed the above Fixed Deposit Receipts of Rs.656,000,000
and Current Account Bank Balance of Rs. 15,658,387. (refer note 32 for
details)
3. Gratuity and other post-employment benefit plans:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The following tables summarize the components of net benefit expense
recognized in the statement of profit and loss and the funded status
and amounts recognized in the balance sheet for the respective plans.
The plan assets comprises of 25.22% (previous year 27.56%) investments
in Government of India Securities, 55.63% (previous year 58.71%)
investments in high quality corporate bonds and 19.15% (previous year
13.73%) in Fixed Deposits with Bank.
The expected rate of return on assets is taken on the basis of LIC rate
and RBI Deep Discounting Rate.
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.
4. Segmental Information:
Business Segments:
The Company operating businesses are organized and managed separately
according to the nature of services provided, with each segment
representing a strategic business unit that serves different markets.
The Company principal business is sale of television programmes and
motion pictures production and distribution.
5. Capital and other commitments
Estimated amount of contracts remaining to be executed on capital
account and not provided for, are Rs. Nil (31 March 2013: Rs. Nil)
6. Contingent liabilities
31 March 2014 31 March 2013
Rs. Rs.
a) Income Tax in respect of
Assessment Years 2000-01 to 2011-12 in 485,354,530 483,388,673
respect of which the Company has gone
on appeal. Based on judicial
pronouncements, the Company''s claim is
likely to be accepted by the appellate
authorities.
b) Custom case pending at appellate
authorities in respect of financial 445,000 445,000
year 2008-09.
The Company is contesting the demands and the management, including its
tax advisors, believe that its position will likely be upheld in the
appellate process. No tax expense has been accrued in the financial
statements for the tax demand raised. The management believes that the
ultimate outcome of this proceeding will not have a material adverse
effect on the company''s financial position and results of operations.
7. During the financial year 2010-2011, the Company had filed an
application with the Commissioner of Sales Tax seeking clarification in
respect of applicability of MVAT on the temporary transfer of
copyrights/ license to a customer with effect from July 1, 2010.
However, the response from the authority is currently awaited. The
Company had obtained a legal opinion in the previous year stating that
such transaction is subject to only service tax and hence MVAT is not
applicable. Management believes that MVAT on such transaction is not
applicable and hence MVAT has not been charged on such transactions.
8. the Company has been charging service tax on sale of content under
the category of ''copyright services'' during the period July 2010 to
June, 2012. With effect from July 1, 2012 copyright service has been
exempted from payment of service tax under serial number 15 of
Notification No.25/2012-ST, Company has decided to not to avail the
exemption and the Company has charged service tax on content sale.
9. In the matter of dispute in respect of repayment of optionally
Fully Convertible Debentures (OFCDs) by two group companies, namely M/s
Sahara India Real Corporation Limited & Sahara Housing Investment
Corporation Limited, the Hon''ble Supreme Court of India vide its order
dated 21-11-2013 had directed the Securities & Exchange Board of India
(SEBI) to attach/freeze several current and non-current assets of group
companies and its promoters. Accordingly, SEBI had attached/frozen the
company''s Fixed Deposit Receipts of Rs. 656,000,000/- Current Account
Bank Balance of Rs. 15,658,387/- and Non Current Investment of Rs.
11,120,300/-. Since the proceedings in relation to the above matter
are in process in the Hon''ble Supreme Court of India, SEBI has the
power to retain and /or utilize these assets /funds towards the
repayment of OFCD Liabilities of the said two group companies. However,
the company''s management is in discussion with the concerned group
companies to provide matching assets as compensation in the event the
company''s attached/frozen assets are appropriated by SEBI.
10. Details of dues to micro and small enterprises as defined under the
Micro, Small and Medium Enterprises (MSMED) Act, 2006
As per the information available with the Company, no amounts are due
to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at 31
March 2014. (31 March 2013: Nil)
11. previous year''s figures have been regrouped where necessary to
conform to this year''s classification.
Mar 31, 2013
1. Corporate information
Sahara one Media And entertainment Limited is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. the company is a television content provider and
also produces and distributes flms.
2. Basis of preparation
the fnancial statements of the company have been prepared in accordance
with generally accepted accounting principles in India (Indian GAAp).
the company has prepared these fnancial statements to comply in all
material respects with the accounting standards notifed under the
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956. the fnancial statement
has been prepared on an accrual basis and under the historical cost
convention.
The accounting policies adopted in the preparation of fnancial
statements are consistent with those of previous year.
3. Capital and other commitments
Estimated amount of contracts remaining to be executed on capital
account and not provided for, are Rs. nil (31 March 2012: Rs. nil)
4. During the fnancial year 2010-2011, the Company had fled an
application with the Commissioner of Sales tax seeking clarifcation in
respect of applicability of MVAt on the temporary transfer of
copyrights/ license to a customer with effect from July 1, 2010.
however, the response from the authority is currently awaited. the
Company had obtained a legal opinion in the previous year stating that
such transaction is subject to only service tax and hence MVAt is not
applicable. Management believes that MVAt on such transaction is not
applicable and hence MVAt has not been charged on such transactions.
5. the Company has been charging service tax on sale of content under
the category of ''copyright services'' during the period July 2010 to
June, 2012. With effect from July 1, 2012 copyright service has been
exempted from payment of service tax under serial number 15 of
notifcation no.25/2012-St, Company has decided to not to avail the
exemption and the Company has charged service tax on content sale.
6. Details of dues to micro and small enterprises as defned under the
Micro, Small and Medium Enterprises (MSMED) Act, 2006
As per the information available with the Company, no amounts are due
to Micro, Small and Medium enterprises as per MSMeD Act, 2006 as at 31
March 2013. (31 March 2012: nil)
7. previous year''s fgures have been regrouped where necessary to
conform to this year''s classifcation.
Mar 31, 2012
1. Corporate information
Sahara One Media And Entertainment Limited is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. The company is a television content provider and
also produces and distributes films.
2. Basis of preparation
The financial statements of the company have been prepared in accordance
with generally accepted accounting principles in India (Indian GAAP).
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 financial statement
has been prepared on an accrual basis and under the historical cost
convention, except for impairment.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except for the
change in accounting policy explained in 2.1(a) below.
3. Gratuity and other post-employment benefit plans:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The following tables summarize the components of net benefit expense
recognized in the statement of Profit and loss and the funded status and
amounts recognized in the balance sheet for the respective plans.
4. Segmental Information:
Business Segments:
The Company operating businesses are organized and managed separately
according to the nature of services provided, with each segment
representing a strategic business unit that serves different markets.
The Company principal business is sale of television programmes and
motion pictures production and distribution.
5. Related party disclosures
Related parties with whom transactions have taken place during the year
Related parties where control exists irrespective of whether
transactions have occurred or not :- Major shareholders having control
over the company
Shri Subrata Roy Sahara
Enterprises owned or significantly influenced by major shareholders, key
management personnel or their relatives
Sahara India Commercial Corporation Ltd.
Sahara hospitality Ltd.
Aamby Valley Ltd.
Sahara India, partnership frm
Sahara India Mass Communication, partnership frm
Geon Studios Pvt. Ltd.
Sahara India Financial Corporation Ltd.
Sahara Sanchar Ltd.
Aamby hospitality Services (UK ) Limited
BSK Network & Entertainment Pvt. Ltd. (w.e.f. August 2, 2011)
S K Film Enterprises (w.e.f. August 2, 2011)
Key Management Personnel
Shri Boney Kapoor, Director (w.e.f. August 2, 2011)
Shri Suresh Mishra, Manager (Assistant Director)
Shri Avinash Kaul, (CEOÃTelevision Content Production) (till August 16,
2010)
Shri Deepak Segal, (COO Ã Motion Picture) (till October 31, 2011)
Shri Sanjay Garg, Chief Finance officer
6. Details of dues to micro and small enterprises as defined under the
Micro, Small and Medium Enterprises (MSMED) Act, 2006
As per the information available with the Company, no amounts are due
to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at 31
March 2012. (31 March 2011: Nil)
7. During the previous year, the Company had fled an application with
the Commissioner of Sales Tax seeking clarification in respect of
applicability of MVAT on the temporary transfer of copyrights/ license
to a customer with effect from July 1, 2010. however, the response from
the authority is currently awaited. The Company had obtained a legal
opinion in the previous year stating that such transaction is subject
to only service tax and hence MVAT is not applicable. Management
believes that MVAT on such transaction is not applicable and hence MVAT
has not been charged on such transactions.
Mar 31, 2011
1. Nature of Operations
Sahara One Media And Entertainment Limited is a television content
provider and also produces and distributes movies.
2. Segmental Information:
Business Segments:
The Company operating businesses are organized and managed separately
according to the nature of services provided, with each segment
representing a strategic business unit that serves different markets.
The Company principal business is sale of television programmes and
motion pictures production and distribution.
(a) Related parties where control exists irrespective of whether
transactions have occurred or not :- Major shareholders having control
over the company
Shri Subrata Roy Sahara
(b) Enterprise owned or significantly influenced by group of
individuals or their relatives who have control or significant
influence over the Company
- Sahara India Commercial Corporation Ltd.
- Sahara Hospitality Ltd.
- Aamby Valley Ltd.
- Sahara India, partnership firm
- Sahara India Mass Communication, partnership firm
- Geon Studios Pvt. Ltd.
- Sahara India Financial Corporation Ltd.
- Sahara Sanchar Ltd.
(c) Key Management Personnel
Manager Shri Suresh Mishra
CEO-Television Content Production Shri Avinash Kaul (till August 16,
2010)
COO Shri Sanjay Chitale (till November 30, 2009)
COO - Motion Picture Shri Deepak Segal (from December 01, 2009)
Chief Financial Officer Shri Sanjay Garg
3, Leases:
The Company has taken the office premises on an operating lease from
Sahara India Commercial Corporation Ltd. There is no escalation clause
in the lease agreement. There are no restrictions imposed by lease
arrangements.
4. Capital Commitments
Estimated amount of contracts remaining to be executed on capital
account and not provided for are Rs. Nil (2009-2010: Rs. Nil)
5. Contingent Liabilities not provided for:
Particulars As at As at
March 31, 2011 March 31, 2010
(Rs.) (Rs.)
a) Guarantees and Counter guarantees
given by the Company :- 525,000,000 525,000,000
Against loan availed by Sahara Sanchar
Limited from a bank.
Loan availed as at 31-3-2011
Rs.215,402,344 (31-3-2010:
Rs.310,402,762).
b) Income Tax of Rs. 101,816,371
in respect of Assessment 101,816,371 99,951,580
Years 2000-01, 2002-03, 2004-05,
2005-06, 2006-07 and 2007-08 in
respect of which the Company has
gone on appeal. Based on judicial
pronouncements, the Company's claim
is likely to be accepted by the
appellate authorities
c) Custom case pending at Tribunal
in respect of financial year 410,000 555,000
2008-09
6. Gratuity and other post-employment benefit plans:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The following tables summaries the components of net benefit expense
recognised in the profit and loss account and the funded status and
amounts recognised in the balance sheet for the respective plans.
The expected rate of return on assets is taken on the basis of LIC rate
and RBI Deep Discounting Rate.
The Company expects to contribute Rs. 360,000 to gratuity in next year
(Previous year Rs. 367,000).
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.
Provident Fund
The Provident Fund being administered by a Trust is a defined benefit
scheme whereby the Company deposits an amount determined as a fixed
percentage of basic pay to the fund every month. The benefit vests upon
commencement of employment. The interest credited to the accounts of
the employees is adjusted on an annual basis to confirm to the interest
rate declared by the Government for the Employees Provident Fund. The
Guidance Note on implementing AS-15, Employee Benefits (revised 2005)
issued by the Accounting Standard Board (ASB) states that provident
funds set up by employers, which requires interest shortfall to be met
by the employer, needs to be treated as defined benefit plan. Pending
the issuance of the Guidance Note from the Actuarial Society of India,
the company's actuary has expressed his inability to reliably measure
the provident fund liability. There is no deficit in the fund.
7. As per the information available with the Company, no amounts are
due to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at
March 31, 2011. (March 31, 2010: Nil)
8. Additional information pursuant to the provisions of paragraphs
3,4, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 :
8.1 Quantitative Details
The Company is engaged in producing /procuring television programmes
and supplying them to media companies. The production and sale of such
programmes cannot be expressed in any generic unit. Hence, it is not
possible to give the quantitative details of sales and certain
information as required under paragraphs 3,4C and 4D of Part II of
Schedule VI to the Companies Act, 1956.
9. During the current year, the Company has filed an application with
the Commissioner of Sales Tax seeking clarification in respect of
applicability of MVAT on the temporary transfer of copyrights/ license
to a customer with effect from July 1, 2010. However, the response from
the authority is currently awaited. The Company has obtained a legal
opinion stating that such transaction is subject to only service tax
and hence MVAT is not applicable. Management believes that MVAT on such
transaction is not applicable and hence MVAT has not been charged on
such transaction.
10. Previous year's figures have been regrouped where necessary to
conform to this year's classification.
Mar 31, 2010
1. Nature of Operations
Sahara One Media And Entertainment Limited is a television content
provider and also produces and distributes movies.
2. Related Parties:
(a) Related parties where control Shri Subrata Roy Sahara exists
irrespective of whether transactions have occurred or not :-
Major shareholders having control over the company
(b) Enterprises under common Sahara India Commercial Corporation Ltd.
control
Sahara Hospitality Ltd.
- Aamby Valley Ltd.
- Sahara India, partnership firm
- Sahara India Mass Communication, partnership firm
- Sahara India Entertainment Management Company Ltd.
- Geon Studios Pvt. Ltd.
- Sahara Sanchar Limited
(c) Key Management Personnel
CEO - TV-Content Production Shri Avinash Kaul (from Feb. 15, 2010 to
Aug. 16, 2010)
COO Shri Sanjay Chitale (till Nov. 30, 2009)
COO - Motion Pictures Shri Deepak Segal (from Dec. 01, 2009)
Manager & Head (Legal) Shri Suresh Mishra
Chief Financial Officer Shri Sanjay Garg
3. Capital Commitments
Estimated amount of contracts remaining to be executed on capital
account and not provided for are Rs. NIL (2008-2009: Rs. NIL)
4. Contingent Liabilities not provided for:
Particulars As at March 31, As at March 31,
2010 2009
(Rs) (Rs.)
a) Guarantees and Counter
guarantees given by the Company:-
- against loan availed by Sahara
Sanchar Limited from a bank. 525,000,000 -
Loan availed as at 31 -3-2010
Rs.310,402,762 (31 -3-2009:
Rs.Nil).
- against loan availed by Sahara
Hospitality Limited from a - 3,000,000,000
bank. Loan availed as at 31-3-2010
Rs. Nil (31-3-2009:
Rs.1,549,038,494).
- against cash credit availed by
Sahara Hospitality Limited from - 66,700,000
a bank. Cash credit availed as
at 31-3-2010 Rs. Nil (31-3-
2009: Rs. 49,197,509).
b) Income Tax of Rs. 99,951,580 in
respect of Assessment 99,951,580 88,085,274
Years 2000-01, 2002-03, 2004-05,
2005-06, 2006-07 and
2007-08 in respect of which the
company has gone on appeal. Based on
judicial pronouncements, the
Companys claim is likely to be accepted
by appellate authorities
c) Custom case pending at Tribunal in
respect of financial year 555,000 555,000
2008-09.
The Corporate Guarantee extended to M/s Sahara Hospitality Limited
aggregating to Rupees 3,066,700,000/- has been discharged before
31.03.2010 and the consortium finance security agents have issued
discharge letters.
5. Gratuity and other post-employment benefit plans:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The following tables summaries the components of net benefit expense
recognised in the profit and loss account and the funded status and
amounts recognised in the balance sheet for the respective plans.
The expected rate of return on assets is taken on the basis of LIC rate
and RBI Deep Discounting Rate.
The Company expects to contribute Rs. 367,000 to gratuity in 2010-11.
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.
Provident Fund
The Provident Fund being administered by a Trust is a defined benefit
scheme whereby the Company deposits an amount determined as a fixed
percentage of basic pay to the fund every month. The benefit vests upon
commencement of employment. The interest credited to the accounts of
the employees is adjusted on an annual basis to confirm to the interest
rate declared by the Government for the Employees Provident Fund. The
Guidance Note on implementing AS-15, Employee Benefits (revised 2005)
issued by the Accounting Standard Board (ASB) states that provident
funds set up by employers, which requires interest shortfall to be met
by the employer, needs to be treated as defined benefit plan. Pending
the issuance of the Guidance Note from the Actuarial Society of India,
the companys actuary has expressed his inability to reliably measure
the provident fund liability. There is no deficit in the fund.
6. Details of loans given to subsidiaries and associates and firms /
companies in which directors are interested. Sahara India Commercial
Corporation Limited.
Balance as at March 31, 2010 Rs. NIL (RY. Rs. NIL)
Maximum amount outstanding during the year Rs. NIL (RY. Rs.
700,000,000)
7. As per the information available with the Company, no amounts are
due to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at
March 31, 2010. (March 31, 2009: NIL)
8. Additional information pursuant to the provisions of paragraphs 3,
4, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 :-
8.1 Quantitative Details
The Company is engaged in producing /procuring television programmes
and supplying them to media companies. The production and sale of such
programmes cannot be expressed in any generic unit. Hence it is not
possible to give the quantitative details of sales and certain
information as required under paragraphs 3,4C
9. Previous years figures have been regrouped where necessary to
conform to this years classification.
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