Mar 31, 2015
1.1 Basis of preparation of financial statements
These financial statements have been prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as prescribed under section 133 of the Companies
Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts)
Rules, 2014 the provisions of the Act (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI).
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 accounting policy
hitherto in use.
1.2 Use of Estimates
The preparation of financial statements in conformity with GAAP
requires the Management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent liabilities as at the date of the financial
statements and reported amounts of income and expenses during the
period. Examples of such estimates include provision for doubtful
debts; future obligations under employees retirement benefit plans,
income taxes, post sales customer support and the useful lives of
fixed tangible and intangible assets. Although these estimates are
based on the management's best knowledge of current events and actions,
uncertainty about these assumptions and estimates could results in the
outcomes requiring a material adjustment to the carrying amounts of
assets, liabilities, revenue and expenses in future periods. Changes
in estimates are reflected in the financial statements in the period in
which changes are made and if material, their effects are disclosed in
notes to accounts.
1.3 Revenue recognition
Revenue is primarily derived from carriage fee, time and space selling
and income from LCO. Revenue is recognized as the related services are
performed/ provided to the clients.
The Company presents revenues net of indirect taxes in its statement of
Profit and Loss.
Profit from sale of investments is recorded on transfer of title from
the Company and is determined as the difference between the sale price
and carrying cost of the investment.
Lease rentals are recognized rateably on a straight-line basis over the
lease term.
Interest is recognized using the time-proportion method, based on rates
implicit in the transaction.
Dividend income is recognized when the Company's right to receive
dividend is established.
1.4 Provisions and contingent liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that is reasonably estimable, 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 requires to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation
or a present obligation that may, but probably will not, require an
outflow of resources. Where there is a possible obligation or a
present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
1.5 Tangible assets and capital work-in-progress
Tangible assets are stated at cost, less accumulated depreciation and
impairment, if any. Direct costs are capitalized until such assets are
ready for use. Capital work-in-progress comprises the cost of fixed
assets that are not yet ready for their intended use at the reporting
date.
1.6 Intangible assets
Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment.
1.7 Depreciation and amortization
Depreciation on tangible assets is provided on the straight-line method
over the useful lives of assets as per schedule II of the companies
Act, 2013 except in case of set top boxes useful lives as estimated by
the management. Depreciation for assets purchased/ sold during the
period is proportionately charged. The Management estimates the useful
lives for the fixed assets as follows:
- For these classes of assets, based on manufacturer's technical
evaluation, the management believes that the useful lives as given
above represent the period over which the management expects to use
these assets. Hence the useful lives for these assets is different from
the useful lives as prescribed under part C of Schedule II of the
Companies Act, 2013
Intangible assets are amortized over their respective individual
estimated useful lives on a straight-line basis commencing from the
date of assets is available to the company for its use.
1.8 Impairment
The management periodically assesses, using external and internal
sources, whether there is an indication that an assets may be impaired.
If any indications exist, the recoverable amount is estimated. An
impairment loss is recognized wherever the carrying amount of an
asset exceeds its recoverable amount.
1.9 Retirement benefits to employees Gratuity
The employees' gratuity scheme is a Defined Benefit Plan (DBP). The
present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method on the balance sheet
date, which recognizes 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 Company recognizes the
net liability of the gratuity in the Balance sheet and expenses in
statement of Profit and Loss in accordance with Accounting Standard
(AS) 15, "Employee Benefits".
Provident Fund
Eligible employees receive benefits from a provident fund, which is a
defined benefit plan. Both the employee and the Company make monthly
contributions to the provident fund equal to a specified percentage of
salary.
Leave encashment
The obligation for leave encashment is provided on the basis of earned
leave standing to the credit of the employees. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit Method on the balance sheet date, which
recognizes 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 Company recognizes the net liability of
the leave encashment in the Balance sheet and expenses in statement
of Profit and Loss in accordance with Accounting Standard (AS) 15,
"Employee Benefits"
1.10 Foreign Currency Transactions
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of transac-
tion.
Foreign currency denominated non-monetary liabilities is translated at
exchange rates in effect at the Balance Sheet Date. The gains or losses
resulting from such transactions are included in the respective assets.
Revenue, expenses and cash flow items denominated in foreign currencies
are translated using the exchange rate in effect on the date of the
transactions. Transaction gains or losses realized upon settlement of
foreign currency transactions are included in determining net profit
for the period in which the transaction is settled.
1.11 Taxes on income
a) Current tax
i) Current income tax is measured at the amount expected to be paid to
taxation authorities in accordance with the Income Tax Act, 1961
enacted in India by using tax rates and the tax laws that are enacted
at the reporting date after considering tax allowances and exemptions.
Provisions are recorded when it is estimated that a liability due to
disallowances or other matters is probable.
ii) Minimum Alternate Tax (MAT) paid in accordance with the tax laws,
which gives rise to future economic benefits in the form of tax
credit against future income tax liability, is recognised as an asset
in the Balance Sheet if there is convincing evidence that the Company
will pay normal tax after certain period and the resultant asset can be
measured reliably.
b) Deferred tax
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reversed in another, based on the tax
effect of the aggregate amount of timing difference. The tax effect is
calculated on the timing differences at the end of the an accounting
period based on enacted or substantively enacted regulations. Deferred
tax assets in situation where unabsorbed depreciation and carry forward
business loss exists, are recognized only if there is virtual certainty
supported by convincing evidence that sufficient future taxable
income will be available against which such deferred tax asset can be
realized. Deferred tax assets, other than in situation of unabsorbed
depreciation and carry forward business loss, are recognized only if
there is reasonable certainty that they will be realized. Deferred tax
assets are reviewed for the appropriateness of their respective
carrying values at each reporting date. Deferred tax assets and
deferred tax liabilities have been offset as they relate to income
taxes levied by the same taxation authority.
1.12 Earnings per share
Basic earnings per share is 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 diluted 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.
1.13 Investments
Trade investments are the investments made to enhance the Company's
business interest. Investments are either classified as current or
non-current based on Management's intention. Current investments are
carried at the lower of cost and fair value of each investment
individually. Long term investments are carried at cost less
provisions recorded to recognize any decline, other than temporary, in
the carrying value of each investment.
1.14 Cash and cash equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks.
The Company considers all highly liquid investments with remaining
maturity at the date of purchase of three months or less and that they
are readily convertible to known amounts of cash to be cash
equivalents.
1.15 Cash flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
1.16 Leases
Lease under which the company assumes substantially all the risks and
rewards of ownership are classified as finance leases. Such assets
acquired are capitalized at fair value of the asset or present value of
the minimum lease payments at the inception of the lease, whichever is
lower. Lease payments under operating leases are recognized as an
expense on a straight-line basis in the Statement of Profit and Loss
over the lease term.
1.17 Borrowing costs
Borrowing cost includes interest and ancillary costs incurred in
connection with the arrangement of borrowings. Borrowing costs
directly attributable to the acquisition, construction or production of
an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalised as part of the cost
of respective asset. All other borrowing costs are recognised as
expenses in the period in which they occur.
Mar 31, 2014
A) AS - 1 Disclosure of Accounting policies
The Financial Statements are prepared to compile with the Accounting
Standards (AS) referred to in the Companies (Accounting Standard) Rules
2006 issued by the central government in exercise of the power
conferred under sub- section (i) (a) of Section 642 and the relevant
provision of the Companies Act 1956 corresponding to section 469 of the
Companies Act, 2013 (the ''Act''). The accompanying financial statements
are prepared in accordance with generally accepted accounting
principles in India ("GAAP"), under the historical Cost convention
on the accrual basis as a going concern. The company has consistently
applied the accounting policies unless otherwise stated.
b) AS - 2 Valuation of inventories
In the absence of inventory AS-2 is not applicable.
c) AS - 3 Cash Flow Statements
The Cash flow statement is prepared under " Indirect method" and
the same is annexed.
d) AS - 4 Contingencies and events occurring after Balance Sheet Date
Two Petitions have been filed on 15.05.2014 by Den Networks Limited
against the company claiming placement fee due for Rs.3370800/= and
Rs.11217274/= respectively before TDSAT. The company has already
transferred these MOUs to its sister concern M/s. Sea News Network
Limited, hence there is no liability of the company requiring any
provision in this regard.
f) AS - 6 Depreciation accounting
Depreciation is charged on straight-line method (SLM) method as per
rates specified in schedule XIV of the Companies Act, 1956.
In respect of additions/deductions during the year, pro-rata
depreciation has been provided at the rates proscribed under schedule
XIV.
Depreciation in respect of assets acquired during the year, whose cost
does not exceed Rs.5000/- has not been charged @100%.therefore a sum of
Rs.22,86,29,565.82 has been less charged as depreciation.
Depreciation on set top boxes has been charged for an amount as is
arrived at by dividing 90% of the original cost thereof to the company
by specified period in each case as certified by Chartered Engineer.
g) AS - 7 Construction Contracts
The accounting standard is not applicable.
h) AS - 8 Research & Development
The accounting standard is withdrawn.
i) AS - 9 Revenue recognition
(i) Income of the company is derived from services. Revenue is
recognized on accrual basis on the basis of services provided to the
clients.
(ii) Income from Investment is credited to revenue in the year in which
it accrues. Income is stated in full with tax thereon.
(iii) Dividend is recognized as income as and when the right to receive
such payment is established.
(iv) Other Income is accounted for on accrual basis in accordance with
Accounting Standard (AS) 9 - "Revenue Recognition".
(v) The revenue and expenditure are accounted on a going concern basis.
j) AS - 10 Accounting for fixed assets
Fixed assets are stated at cost including directly attributable cost of
bringing them to their respective working condition for intended use,
less accumulated depreciation thereon.
l) AS - 12 Accounting for Government Grants
The company has not received any grants.
m) AS - 13 Accounting for Investments-
Investments are classified into current investments and long-term
investments. The cost of investments includes acquisition charges such
as brokerage charges, fees and duties. Current Investments are carried
at lower of Cost and Fair Value.
Long-term investments are valued at cost. No Provision for diminution
has been made to recognize the decline being temporary in the carrying
value of each investment.
n) AS - 14 Accounting for amalgamation
During the year there was no amalgamation.
o) AS - 15 Accounting for employee benefits
- Short Term employee benefits are recognized as an expense at the
undiscounted amount in the Profit & Loss account of the year in which
the related service is rendered.
b) Defined Benefit Plan
The employees'' gratuity scheme is a Defined Benefit Plan(DBP). The
present value of obligation is determined based on actuarial valuation
using the Projected Unit Credit Method, which recognizes 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 encashment is recognized in the
same manner as gratuity.
p) AS - 16 Borrowing cost
a) The borrowing costs have been treated in accordance with accounting
standard.
b) Amount of borrowing costs attributable to qualifying Assets
capitalized during the year. Amount due within one year in respect of
Term Loans.
q) AS - 17 Segment reporting
The company is a single product, single location company and hence the
requirements of Accounting Standard 17 on Segment Reporting is not
applicable.
t) AS - 20 Earning per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period.
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 dilative potential equity shares. The
Company does not have any outstanding diluted Potential equity shares,
consequently the basic and diluted earning per share of the Company
remain the same.
Disclosure is made in the Profit and Loss A/c as per the requirements
of the standard.
u) AS - 21 Consolidated financial statements
Company has two subsidiaries namely Sea News Network Ltd., Jain
Telemedia Services Ltd. Consolidated financial statements for the year
are required to be prepared and reported as per (AS) requirement.
v) AS - 22 Accounting for taxes on income
The Provisions for tax for the year ended 31.03.2014 is made in
accordance with provisions of Income tax Act, 1961.
Deferred tax Liability and assets are recognised based on timing
deference using the tax rates substantively enacted on the Balance
Sheet date.
w) AS - 23 Accounting for investments in associates in consolidated
financial statements
Not applicable
x) AS - 24 Discontinuing operations
During the year the company has not yet discontinued any of its
operations.
y) AS - 25 Interim Financial reporting
Company has not selected for any interim financial reporting.
z) AS - 26 Accounting for intangible assets
During the year company acquired the following assets falling under the
definition of intangible assets as per account standard and the
following discourse is made in respect of these assets.
(i) Trademark
i. Estimated useful life 10 Year
ii. Amortisation rates used 10% each year as deprecation
Gross carrying amount in the beginning and at the end of year together
with addition and deletion during the period.
(ii) Software
i. Estimated useful life 3 Year
ii. Amortisation rates used 33.33% each year as deprecation
Gross carrying amount in the beginning and at the end of year together
with addition and deletion during the year.
(iii) Video Right
i. Estimated useful life 10 Year
ii. Amortisation rates used 10% each year as deprecation
Gross carrying amount in the beginning and at the end of year together
with addition and deletion during the year.
Mar 31, 2012
A) AS - 1 Disclosure of Accounting policies
The Financial Statements are prepared to compile with the Accounting
Standards (AS) referred to in the Companies (Accounting Standard) Rules
2006 issued by the central government in exercise of the power
conferred under sub-section (i)(a) of Section 642 and the relevant
provision of the Companies Act, 1956 ('the Act'). The accompanying
financial statements are prepared in accordance with generally accepted
accounting principles in India ("GAAP"), under the historical cost
convention on the accrual basis as a going concern. The company has
consistently applied the accounting policies unless otherwise stated.
b) AS - 2 Valuation of Inventories
Inventories are valued at Cost or Net Realizable Value whichever is
lower. However Company is a service provider and it has no inventory.
c) AS - 3 Cash Flow Statements
The Cash Flow statement is prepared under "Indirect method" and the
same is annexed.
d) AS - 4 Contingencies and events occurring after Balance Sheet Date
There are no contingencies and events occurred after Balance Sheet date
for reporting, except a demand notice by M/s. Torrent Power Ltd. of an
amount of Rs. 65,24,741.20 for rented premises (Registered office) of
the company against which a petition will be filed by the company in
the competent court after taking the expert legal opinion.
f) AS - 6 Depreciation accounting
Depreciation is charged on straight-line method (SLM) method as per
rates specified in schedule XIV of the Companies Act, 1956.
In respect of additions/deductions during the year, pro-rata
depreciation has been provided at the rates prescribed under schedule
XIV.
Depreciation in respect of assets acquired during the year, whose cost
does not exceed Rs. 5000/- has not been charged @ 100%, therefore a sum
of Rs. 32835.22 has been less charged as depreciation.
g) AS - 7 Construction Contracts
The accounting standard is not applicable.
h) AS - 8 Research & Development
The accounting standard is withdrawn.
i) AS - 9 Revenue recognition
i) Income of the company is derived from services. Revenue is
recognized on accrual basis on the basis of services provided to the
clients.
ii) Income from Investment is credited to revenue in the year in which
it accrues Income is stated in full with tax thereon.
iii) Dividend is recognized as income as and when the right to receive
such payment is established.
iv) Other income is accounted for on accrual basis in accordance with
Accounting Standard (AS) 9- "Revenue Recognition".
v) The revenue and expenditure are accounted on a going concern basis.
l) AS - 12 Accounting for Government Grants
The company has not received any grants.
m) AS - 13 Accounting for Investments
Investments are classified into current investments and long-term
investments. The cost investments include acquisition charges such as
brokerage charges, fees and duties. Current investments are carried at
lower of Cost and Fair Value.
n) AS -14 Accounting for amalgamation
During the year there was no amalgamation.
o) AS - 15 Accounting for employee benefits
- Short Term employee benefits are recognized as an expense at the
undiscounted amount in the Profit & Loss account of the year in which
the related service is rendered.
- However no such expense has been recognised during the current
period.
p) AS - 16 Borrowing cost
a) The borrowing costs have been treated in accordance with accounting
standard on borrowing cost issued by the ICAI.
b) Amount of borrowing costs attributable to qualifying costs
capitalized during the year.
q) AS -17 Segment reporting
The company is a single product, single location company and hence the
requirements of Accounting Standard 17 on Segment Reporting are not
applicable.
r) AS - 18 Related party disclosure
Disclosure is made as per the requirements of the standard and the same
is furnished below:
List of related parties
Reporting entity Sea TV Network Limited
Subsidiary companies Sea News Network Limited
Jain Telemarks Service Limited
Sea Print Media and Publication Limited
Holding companies NIL
Fellow subsidiaries NIL
Associate companies NIL
Joint Venture NIL
Group Company Janavi Media Venture Limited
Narokar(###) Global Broadcasting Limited
Key Managerial Personal Mr. Neeraj Jain Chairman & MD
Mr. Pankaj Jain Director
Mr. Akshay Kumar Jain Director
Relatives of Key
Management Personnel Mrs. Sonal Jain Wife of Mr.
Neeraj Jain
Mrs. Chhaya Jain Wife of Mr.
Pankaj Jain
Mr. Chakresh Kumar Jain Brother of
Mr. Akshay
Kumar Jain
t) AS - 20 Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period.
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 dilative potential equity shares. The
company does not have any outstanding diluted potential equity shares,
consequently the basic and diluted earnings per share of the Company
remain the same.
Disclosure is made in the Profit and Loss A/c as per the requirements
of the standard.
u) AS - 21 Consolidated financial statements
Company has three subsidiaries namely Sea News Network Ltd. Jain
Telemedia Services Ltd. and Sea Print Media and Publication Ltd.
Consolidated financial statements for the year are required to be
prepared and reported as per (AS) requirement.
w) AS - 23 Accounting for investments in associates in consolidated
financial statements
Not applicable
x) AS - 24 Discontinuing operations
During the year the company has not yet discontinued any of its
operation.
y) AS - 25 Interim Financial reporting
Company has not selected for any interim financial reporting.
z) AS - 26 Accounting for intangible assets
During the year company acquired the following assets falling under the
definition of intangible assets as per account standard and the
following discourse is made in respect of these assets.