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Accounting Policies of Sea TV Network Ltd. Company

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.

 
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