Notes to Accounts of Tips Industries Ltd.

Mar 31, 2018

4] Leases

The Company has cancellable operating lease arrangements for certain accommodation. Terms of such lease include option for renewal on mutually agreed terms. There are no restrictions imposed by lease arrangements and there are no purchase options or sub leases or contingent rents. Operating lease rentals for the year recognized in Statement of Profit and Loss amounts to '' 103 Lakhs (previous year -'' 104 Lakhs).

5] Corporate Social Responsibility

a] As required by Section 135 of Companies Act, 2013 and rules therein, a Corporate social responsibility committee has been formed by the Company. The Company has spent the following amount during the year towards corporate social responsibility (CSR) for activities listed under Schedule VII of the Companies Act, 2013.

Gross amount required to be spent by the Company during the year 2017-18 Rs, NIL (Previous year Rs, NIL)

6] Proposed Dividend

The Board of Directors at its meeting held on May 28, 2018 have recommended a payment of final dividend of Rs, 1/- (Rupees One only) per equity share of face value of Rs, 10 each for the financial year ended March 31, 2018. The same amounts to Rs, 143.19 lakhs excluding dividend distribution tax of Rs, 29.15 lakhs. Same is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

7] Share Capital

a] Rights, preferences and restrictions attached to Equity shares : The company has only one class of equity shares having a par value of Rs, 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholdings.

d] Information on equity shares alloted without receipt of cash or alloted as bonus shares or shares bought back

During the Financial Year 2010 - 11, the Company had bought back 1,347,200 Equity Shares of Rs, 10/- each from open market at an average price of Rs, 47.50/-.

During the Financial Year 2012 - 13, the Company had bought back 600,060 Equity Shares of Rs,10/- each from open market at an average price of Rs, 77.18/During the Financial Year 2015 - 16, the Company had bought back 290,958 Equity Shares of Rs, 10/- each from open market at an average price of Rs, 62.83/During the Financial Year 2016 - 17, the Company had bought back 749,023 Equity Shares of Rs, 10/- each from open market at an average price of Rs, 63.34/] Borrowings :

Nature of Securities and Terms of Repayment

i] Overdraft Facilities

Overdraft Facility of Rs, 2,229 lacs (March 31, 2017 Rs, 5,314 lacs, April 1, 2016 Rs, 7,092 Lacs) from two Banks are secured on first paripassu charge by way of hypothecation of Current and Future Audio Library (IPR) of the Company and also charge by way of mortgage of office premises owned by the Company situated at Mumbai and residential premises owned by the promoters. Further, personal guarantee of both the executive directors has been provided. The overdraft facility is repayable in 7 yearly equal installments. Last installment dues are in August, 2020 and September, 2021 respectively.

ii] Term Loans

a) Term Loan from Life Insurance Corporation of India is repayable on the maturity of employer-employee insurance policy of the Directors taken by the Company. The Loan is secured by lien on the policy. The Policy is maturing in March, 2023.

b) Term Loan of from Standard Chartered Bank is repayable in 87 Installments as revised, and is secured by hypothecation of Commercial Premises owned by Relatives of the Directors. The monthly EMI is Rs,11.25 lacs.

9] Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

10] Related Party Disclosure

i] List of related parties and nature of their relationship is furnished below:

a) Subsidiaries where control exits NIL

b) Joint Ventures NIL

c) Key Management Personnel Mr. Kumar S Taurani -Chairman & Managing Director

Mr. Ramesh S Taurani - Managing Director Mr. I T Gursahani - Chief Financial Officer Ms. Bijal Patel - Company Secretary Non Executive Independent Director Ms. Radhika Pereira Mr. Amitabh Mundhra Mr. Venkitaraman Iyer

d) Relatives of Key Management Personnel Mrs. Renu K Taurani

Mrs. Varsha R Taurani Mr. Kunal K Taurani Mr. Girish K Taurani Ms. Sneha R Taurani Ms. Jaya R Taurani Ms. Raveena R Taurani Ms. Krsna G Taurani Ms. Pratima I Gursahani

e) Enterprise owned or significantly influenced by Key NIL Management Personal or their relatives, where transactions have taken place

11] Segment Reporting

The Company''s Chief Operating Decision Maker (''CODM'') examines the Company performance and has identified two reportable segments of its business.

a) Music (Audio/ Video)

b) Film Production/ distribution

The segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statement. Also the Company borrowings (including finance costs and interest income), income taxes and investments are managed at head office and are not allocated to operating segments.

Segment Revenue is measured in the same way as in the Statement of Profit and Loss.

Segment assets and liabilities are measured in the same way as in the financial statements. These assets are allocated based on the operations of the segment.

B] Financial risk management

The Company has exposure to the following risks arising from financial instruments:

* Credit Risk ;

* Liquidity Risk ; and

* Market Risk

i] Risk Management objectives

The Company’s activities expose it to a variety of financial risks viz. credit risk, liquidity risk and market risk. In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factors

ii] Credit risk management

a] Credit Risk

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company deals with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company uses publicly available financial information and its own trading records to rate its major customers. The Company''s exposure and credit ratings of its counterparties are regularly monitored and the aggregate value of transactions concluded is spread amongst counterparties

b] Cash and Cash equivalents and other Bank balances

The Company held cash and cash equivalents and other bank balances of ''788.44 lakhs as on March 31, 2018 (March 31, 2017 : ''109.09 lakhs and April 01, 2016 : '' 187.57 lakhs). The cash and cash equivalents are held with bank counterparties with good credit ratings.

c] Loans and Advances :

The Company held Loans and Advances of '' 510 lakhs as on March 31, 2018 (March 31, 2017 : '' 510/- and April 01, 2016 : '' 508 lakhs). The loans and advances are in nature of rent deposit paid to landlords and are fully recoverable.

iii] Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation

As of March 31, 2018, March 31, 2017 and April 01, 2016 the Company had unutilized credit limits from banks of '' 2,416 lakhs, '' 759 lakhs and ''409 lakhs respectively.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements

iv] Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs

Currency Risk

The company is exposed to currency risk on account of its borrowings and other receivables / payables in foreign currency. The functional currency of the Company in Indian Rupees.

Financial instruments - Fair values and risk management Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)

The currency profile of financial assets and financial liabilities as at March 31, 2018, March 31, 2017 and April 01, 2016 are as below :

The Company''s exposure to foreign currency risk at the end of the reporting period expressed in INR, are as follows:

v] Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company''s interest rate risk arises from borrowings. The interest rate profile of the Company''s interest bearing financial instruments as reported to the management of the Company is as follows

13] Capital Management

The Company''s capital management objectives are:

- to ensure the company''s ability to continue as A going concern

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents and maturity profile of the overall of the Company.

14] Employee Benefits:

The Company contributes to the following post-employment defined benefit plans in India

i] Post Employment Defined Contribution Plans :

The contributions to the Provident Fund and Family Pension fund of certain employees are made to a Government administered Provident Fund and there are no further obligations beyond making such contribution.

The Company recognized Rs, 8.28 lakhs for year ended March 31, 2018 (Rs, 8.94 lakhs for year ended March 31, 2017) provident fund contributions in the Statement of Profit and Loss.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

ii] Post Employment Defined Benefit Plans :

Gratuity

The Company participates in the Employees Gratuity scheme, a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on death or on separation / termination in terms of the provisions of the Payment of Gratuity Act, 1972. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust fund.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at March 31, 2018. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The following table sets forth the particulars in respect of the Gratuity Plan (Funded) of the Company.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumption the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the Balance Sheet.

Employee Benefits: iii] Leave Obligation

The Company provides leave to employees. The employees at the end of the financial year can carry forward their balance leave to the subsequent financial year and it gets lapsed if not availed in that subsequent financial year. The Company Rules does not provide encashment of Leave at any time during the tenure of employment and also on retirement or termination. The Company records a provision for leave obligation at the end of the financial year.

iv] Risk Exposure

Through its defined benefit plans, the Company is exposed to some risks, the most significant of which are detailed below:

Discount rate risk

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability

Salary growth risks

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability

Demographic risk

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the benefit cost.

15] Deferred Tax Assets / Liabilities

Considering the nature of the business of the Company, during the year ended March 31, 2018, Company had not recognized the deferred tax liability for current year and also for earlier years on the timing difference in accounting of inventory for which auditors have qualified their report for the same. Company has not recognized the Deferred tax liability on unamortized cost of production as in the opinion of the management the Company will have sufficient unabsorbed depreciation and business losses in the year in which timing differences will reverse.

17] Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares

18] First time adoption of Ind AS

A] Transition to Ind AS

For the purposes of reporting as set out in note 34, the Company has transitioned the basis of accounting from Indian generally accepted accounting principles ("IGAAP") to Ind AS. The accounting policies set out in note 34 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 01, 2016 (the "transition date").

In preparing the opening Ind AS balance sheet as at 1^st April, 2016 and in presenting the comparative information for the year ended March,

31, 2017, the Company has adjusted amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected the financial performance, cash flows and financial position is set out in the following tables and the notes that accompany the tables. On transition, the Company did not revise estimates previously made under IGAAP except where required by Ind AS.

B] Exemption and exceptions availed B.1 Ind AS optional exemptions B.1.1 Property plant and equipment and Investment Property

The company has elected to continue with the carrying value for all its Propert, Plant and Equipment as recognized in its Indian GAAP financial statements as deemed cost at the date of transition.

B.2 Ind AS mandatory exceptions B.2.1 Estimates

The estimates as April 01, 2016 and March 31, 2017 are consistent with those made for the same dates in accordance with the Indian GAAP (after adjustments to reflect any differences if any, in accounting policies). The Company has made estimates for following items in accordance with Ind AS at the date of transaction as these were not required under IGAAP:

1] Investment in Mutual Fund carried at FVTPL;

B.2.2 Classification and measurement of financial assets

The Company has classified and measured the financial assets on the basis of the facts and circumstances that exists at the date of transaction to Ind AS.

D] Notes to Reconciliation

1] Fair valuation of investments in mutual funds: Under the Ind AS, the Investments in mutual funds have been accounted at fair value through Statement of Profit and Loss instead of accounting at lower of cost and fair value under IGAAP.

2] Proposed Dividend: Under Ind AS, the liability for final dividend is recognized in the period in which it is approved by shareholders. Accordingly, final dividend proposed and accounted for under the previous GAAP has been adjusted in equity

3] Remeasurement cost of net defined benefit liability: The Remeasurement cost arising primarily due to change in actuarial assumptions has been recognized in Other Comprehensive Income (OCI) under Ind AS instead of Statement of Profit and Loss under previous GAAP.

4] Investment Property : Under the previous GAAP, Investment Property were presented as part of property, plant and equipment. Under Ind AS, Investment properties are required to be separately presented on the face of the balance sheet. Accordingly, carrying amount PPE reduced by Rs, 2155 Lakhs as at March 31, 2018 (March 31, 2017 - Rs, 2200 Lakhs) and same is disclosed as Investment Property in the respective period. However, there is no impact on the total equity or profit as a result of this adjustment

5] The company has elected to continue with the carrying value for all its Propert, Plant and Equipment as recognized in its Indian GAAP financial statements as deemed cost at the date of transition.

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Mar 31, 2016

a. Rights/Terms attached to Equity Shares

Company has only one class of shares referred to as equity shares having par value Rs,10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors in their meeting held on May 25, 2016, proposed dividend of Rs,1/- per equity share (in previous year Rs,1/- per equity share). In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential share amounts. However no such preferential shares amount exist currently. The distribution will be in proportion to the number of equity shares held by shareholders.

c. information on equity shares allotted without receipt of cash or allotted as bonus shares or shares bought back

During the Financial Year 2010 - 11, the Company had bought back 1,347,200 Equity Shares of Rs,10/- each from open market at an average price of Rs, 47.50/During the Financial Year 2012 - 13, the Company had bought back 600,060 Equity Shares of Rs,10/- each from open market at an average price of Rs,77.18/During the Financial Year 2015 - 16, the Company had bought back 290,958 Equity Shares of Rs,10/- each from open market at an average price of Rs,62.83/-

Nature of Securities and Terms of Repayment

i) Term Loan from Life Insurance Corporation of India is repayable on the maturity of Life Insurance Policy taken by the Company. The Loan is secured by Lien on the Keyman Insurance Policy of Director and same is being maturing on 01/01/2017.

ii) Overdraft Facility from Bank, balance outstanding amounting to Rs, 5,235/- (March 31, 2015 Rs, 6,503/-) is secured by way of pari passu first charge along with another bank on all the Intellectual Property Rights (IPR) of the audio Library of the company, current and future and is receivable plus personal guarantee of both the directors with exclusive charge on escrow of royalty income from Phonographic Performance Ltd (PPL) and also a charge by way of mortgage of office premises owned by the Company. The overdraft facility is repayable in 7 yearly equal installments from August 2014. Last installment due in August 2020.

iii) Overdraft Facility from Bank , balance outstanding amounting to Rs, 1,857/- (March 31, 2015 : Rs,2,498/- ) is secured by way of pari passu first charge along with another bank on all the Intellectual Property Rights (IPR) of the audio Library of the company, current and future and also a charge by way of mortgage of Residential/Commercial Premises owned by promoters. The Term Loan is also secured by lien on the keyman insurance policy of the Director with LIC of India .The overdraft facility is repayable in 7 yearly equal installments from September 2015, Last installment due in September 2021.

iv) Term Loan from Standard Chartered Bank is repayable in 128 monthly Installments of Rs,13/- each from the date of loan viz. 28/03/2013 and is secured by hypothecation of Commercial Premises owned by Relatives of Directors.

* The Company is hopeful of favorable decisions for the appeal pending before the Hon''able Supreme Court. The Hon''able Supreme Court has granted stay until disposal of petition.

** The management has taken an opinion from the consultant in respect of value added tax demand against the company. The management is confident that the case will be decided in favour of the Company based on its own assessment as well as opinion provided by the consultant.

1. During the year, the Company has made a representation to the Central Government with respect to the excess managerial remuneration paid/ to be paid for the period June1, 2015 to May 31, 2018. However, the approval from Central Government is awaited.

2. Trade Receivables, Trade Payables and advances are subject to confirmations and reconciliation, if any.

3. Provision for Tax:

The current tax provision is based on tax payable on book profits computed u/s 115JB of the Income Tax Act, 1961. Credit for set off of this book profit tax is not recognized in the books in view of the uncertainty about future taxable profits.

4. DISCLOSURE REQUIRED AS PER ACCOUNTING STANDARDS ISSUED BY THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA.

a) Gratuity:

(i) Description of the Plan:

The Company has covered its gratuity liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued by LIC of India. Under the plan, employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the plan asset.

b) Key Management Personnel:

Kumar S. Taurani Chairman & Managing Director I T Gursahani Chief Financial Officer

Ramesh S. Taurani Managing Director Bijal Patel Company Secretary

c) Relatives of Key Management Personnel:

Mrs. Renu K. Taurani, Mrs. Varsha R. Taurani, Mr. Kunal K. Taurani, Mr. Girish K. Taurani, Ms. Sneha R. Taurani, Ms. Jaya R. Taurani, Ms. Raveena R. Taurani, Ms. Kavita S. Lakhani, Ms. Bhagwanti P. Mulani and Ms. Pratima I. Gursahani

5. DEFERRED TAX ASSETS/ LIABILITIES

Considering the nature of the business of the Company, during the year ended March 31, 2016, Company had not recognized the deferred tax liability for current year and also for earlier years on the timing difference in accounting of inventory for which auditors have qualified their report for the same. Company has not recognized the Deferred tax liability on unamortized cost of production as in the opinion of the management the Company will have sufficient unabsorbed depreciation and business losses in the year in which timing differences will reverse.

6. Previous year’s figures have been regrouped wherever necessary.

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Mar 31, 2015

1. Rlghts/Terms attached to Equity Shares

Company has only one class of shares referred to as equity shares having par value Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors in their meeting held on May 08,2015, proposed dividend of Rs. 1 /- per equity share (in previous year Rs. 1/- per equity share). In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential share amounts. However no such preferential shares amount exist currently. The distribution will be in proportion to the number of equity shares held by shareholders.

2. Information on equity shares alloted without receipt of cash or alloted as bonus shares or shares bought back

During the Financial Year 2010 -11, the Company had bought back 1,347,200 Equity Shares of Rs. 10/- each from open market at an average price of Rs. 47.50/-. During the Financial Year 2012-13, the Company had bought back 600,060 Equity Shares of Rs. 101- each from open market at an average price of Rs. 77.18/-

3. Nature of Securities and Terms of Repayment

(i) Term Loan from Life Insurance Corporation of India is repayable on the maturity of Life Insurance Policy taken by the Company. The Loan is secured by Lien on the Insurance Policy.

(ii) Overdraft Facility from Bank, balance outstanding amounting to Rs. 6,503/- (March 31,2014 Rs. 5,590/-) is secured by way of pari passu first charge alongwith another bank on all the Intellectual Property Rights (IPR) of the audio Library of the company, current and future with exclusive charge on escrow of royalty income from Phonographic Performance Ltd (PPL) and also a charge by way of mortgage of office premises owned by the Company. The overdraft facility is repayable in 7 yearly equal instalments from August 2014. Last instalment due in August 2020.

(ill) Overdraft Facility from Bank, balance outstanding amounting to Rs. 2,498/- (March 31,2014: Nil) is secured by way of pari passu first charge alongwith another bank on all the Intellectual Property Rights (IPR) of the audio Library of the company, current and future and also a charge by way of mortgage of Residential/Commercial Premises owned by promoters. The Term Loan is also secured by lien on Fixed Deposit of Rs. 175/- with Bank of Baroda and also lien on the keyman insurance policy of the Director with LIC of India .The overdraft facility is repayable in 7 yearly equal instalments from September 2015, Last instalment due in September 2021.

(iv) Term Loan from HDFC Bank is repayable in 48 monthly Instalments of Rs. 38/- each plus Interest from the date of loan viz. 16/08/2010. The Loan is secured by hypothecation of Commercial Premises of the Company at Mumbai. Further the Loan has been guaranteed by the personal guarantee of one of the Director.

(v) Term Loan from BMW India Financial is repayable in 36 monthly Instalments of Rs. 0.66/- each from the date of loan viz. 01 /09/2011. The Loan is secured by hypothecation of related Vehicle. Further the Loan has been guaranteed by the personal guarantee of one of the Director.

(vi) Term Loan from ICICI Bank is repayable in 36 monthly Instalments of Rs. 3.191- each from the date of loan viz. 15/03/2012 and is secured by hypothecation of related Vehicle.

(vii) Term Loan from Kotak Mahindra Bank is repayable in 36 monthly Instalments of Rs. 0.39/- each from the date of loan viz. 28/03/2012 and is secured by hypothecation of related Vehicle.

(viii) Term Loan from ICICI Bank is repayable in 36 monthly Instalments of Rs. 3.19/- each from the date of loan viz. 15/04/2012 and is secured by hypothecation of related Vehicle.

(lx) Term Loan from Standard Chartered Bank is repayable in 128 monthly Instalments of Rs. 13/- each from the date of loan viz. 28/03/2013 and is secured by hypothecation of Commercial Premises owned by Relatives of Directors.

4. Contingent Liabilities:

Particular As on As on 31.03.15 31.03.14

(a) Penalty under FEMA Act* 90.00 90.00

(b) Demand by Sales Tax Department** 983.40 425.45

* The Company is hopeful of favorable decisions for the appeal pending before the Hon'able Supreme Court. The Hon'able Supreme Court has granted stay until disposal of petition.

** The management has taken an opinion from the consultant in respect of value added tax demand against the company. The management is confident that the case will be decided in favour of the Company based on its own assessment as well as opinion provided by the consultant.

5. Mr. Kumar Taurani and Mr. Ramesh Taurani were re-appointed as Chairman & Managing Director and Managing Director respectively, of the Company for the period of 3 (Three) years w.e.f. June 1,2012 to May 31,2015 at a gross remuneration of Rs. 150.00/- (Rupees One Crore Fifty Lacs) p.a. (i.e. Rs. 12.50/- p.m.) pursuant to approval from the shareholders in their meeting held on July 27, 2012. Application to pay the aforesaid remuneration was made to Central Government vide letter dated October 4,2012.

The Central Government, vide its letter dated December 9,2013 approved remuneration of Rs. 90 lacs p.a. for the aforesaid period. Accordingly, excess remuneration paid for the period June 1,2012 to September 30,2013 is Rs. 160 lacs.

Further, the Company has made revised application(s) on December 24, 2013 to Central Government for enhancement of remuneration of Rs. 150 Lacs p.a to Mr. Kumar Taurani & Mr. Ramesh Taurani and reminder letter(s) has been sent on December 2,2014 for the same.Approval(s) for the same is awaited. Accordingly, the required adjustments in the accounts for excess remuneration, if any, will be made on the matter reaching finality.

6. Trade Receivables, Trade Payables and advances are subject to confirmations and reconciliation, if any.

7. Provision for Tax:

The current tax provision is based on tax payable on book profits computed u/s 115JB of the Income Tax Act, 1961. Credit for set off of this book profit tax is not recognized in the books in view of the uncertainty about future taxable profits.

8. DISCLOSURE REQUIRED AS PER ACCOUNTING STANDARDS ISSUED BY THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA.

(a) Gratuity

[i] Description of the Plan:

The Company has covered its gratuity liability by a Group Gratuity Policy named 'Employee Group Gratuity Assurance Scheme' issued by LIC of India. Under the plan, employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the plan asset.

b. Related Party Disclosures:

[I] List of related parties and nature of their relationship is furnished below:

(a) Subsidiaries: NIL

(b) Key Management Personnel:

KumarS. Taurani Chairman & Managing IT Gursahani Chief Financial Director Officer

Ramesh S. Taurani Managing Director Bijal Patel Company Secretary

(c) Relatives of Key Management Personnel :

Mrs. Renu K. Taurani, Mrs. Varsha R. Taurani, Mr. Kunal KTaurani, Mr. Girish KTaurani, Ms. Sneha RTaurani, Ms. Jaya R. Taurani, Ms. Raveena R. Taurani, Ms. Kavita Lakhani, Ms. Bhagwanti Mulani and Ms. Pratima Gursahani

9. DEFERREDTAXASSETS/LIABILITIES

Considering the nature of business carried on by the Company, Deferred Tax Liability is not recognised on unamortised cost of production as there is no virtual certainty that sufficient future income can be realised therefrom. However the income crystalised therefrom in future shall be offset by unabsorbed depreciation and unabsorbed business losses of previous years.

10. Previous year's figures have been regrouped wherever necessary.

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Mar 31, 2014

1 a. Rights/Terms attached to Equity Shares

Company has only one class of shares referred to as equity shares having par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors in their meeting held on 9th May 2014, proposed dividend of Re. 1/- per equity share (in previous year Rs. 2.1/- per equity share). In the unlikely event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential share amounts. However, no such preferential shares amount exist currently. The distribution will be in proportion to the number of equity shares held by shareholders.

b. Information on equity shares alloted without receipt of cash or alloted as bonus shares or shares bought back

During the Financial Year 2010 - 11, the Company had bought back 13,47,200 Equity Shares of Rs.10/- each from open market at an average price of Rs. 47.50/-.

During the Financial Year 2012 - 13, the Company had bought back 60,00,60 Equity Shares of Rs.10/- each from open market at an average price of Rs. 77.18/-

2 TERM LOANS FROM BANKS

1. Term Loan from Life Insurance Corporation of India is repayable on the maturity of Life Insurance Policy taken by the Company. The Loan is secured by Lien on the Insurance Policy.

2. Term Loan from ICICI Bank is repayable in 36 monthly Instalments of Rs. 1,09,340/- each from the date of loan viz. 15/10/2010. The Loan is secured by hypothecation of related Vehicle.

3. Term Loan from HDFC Bank is repayable in 48 monthly Instalments of Rs. 37,50,000/- each plus Interest from the date of loan viz. 16/08/2010. The Loan is secured by hypothecation of Commercial Premises of the Company at Mumbai. Further the Loan has been guaranteed by the personal guarantee of one of the Director.

4. Term Loan from BMW India Financial is repayable in 36 monthly Instalments of Rs. 65,771/- each from the date of loan viz. 01/09/2011. The Loan is secured by hypothecation of related Vehicle. Further the Loan has been guaranteed by the personal guarantee of one of the Director.

5. Term Loan from ICICI Bank is repayable in 36 monthly Instalments of Rs. 3,18,705/- each from the date of loan viz. 15/03/2012 and is secured by hypothecation of related Vehicle.

6. Term Loan from Kotak Mahindra Bank is repayable in 36 monthly Instalments of Rs. 38,644/- each from the date of loan viz. 28/03/2012 and is secured by hypothecation of related Vehicle.

7. Term Loan from ICICI Bank is repayable in 36 monthly Instalments of Rs. 3,18,705/- each from the date of loan viz. 15/04/2012 and is secured by hypothecation of related Vehicle.

8. Term Loan from Standard Chartered Bank is repayable in 128 monthly Instalments of Rs. 13,01,338/- each from the date of loan viz. 28/03/2013 and is secured by hypothecation of Commercial Premises owned by Relatives of Directors.

3 Contingent Liabilities:

As on As on 31-03-14 31-03-13

a) Penalty under FEMA Act * 90.00 90.00

b) Demand by Sales Tax Department ** 425.45 NIL

* The Company is hopeful of favorable decisions for the appeal pending before the Hon''able Supreme Court. The Hon''able Supreme Court has granted stay until disposal of petition.

** The management has taken an opinion from the consultant in respect of value added tax demand against the company. The management is confident that the case will be decided in favour of the Company based on its own assessment as well as opinion provided by the consultant.

4 Mr. Kumar S. Taurani and Mr. Ramesh S. Taurani were re-appointed as Managing Director of the Company for the period of 3 (three) years w.e.f. June 1,2012 to May 31, 2015 at a gross remuneration of Rs.1,50,00,000/- (Rupees One Crore Fifty Lacs) p.a. (i.e.12,50,000/- p.m.) pursuant to approval from the shareholders in their meeting held on July 27, 2012. Application to pay the aforesaid remuneration was made to Central Government vide letter dated October 4, 2012.

During the year, the Central Government, vide its letter dated December 9, 2013 approved remuneration of Rs. 90 lacs p.a. for the aforesaid period. Accordingly, excess remuneration paid for the period June 1, 2012 to September 30, 2013 is Rs. 160 lacs. The Company has made a representation to the Central Government with respect to the excess managerial remuneration paid and the required adjustments in the accounts if any will be made on the matter reaching finality.

5 Trade Receivables, Trade Payables and advances are subject to confirmations and reconciliation, if any.

6 Provision for Tax :

The current tax provision is based on tax payable on book profits computed u/s 115JB of the Income Tax Act, 1961. Credit for set off of this book profit tax is not recognized in the books in view of the uncertainty about future taxable profits.

7 Previous year''s figures have been regrouped wherever necessary, to conform with current year''s figures.

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Mar 31, 2013

1 Contingent Liabilities:

As on As on 31-03-13 31-03-12

a) Counter Guarantees

given to a Bank NIL 29

on behalf of Managing

Director

b) Penalty under FEMA Act * 90 90

* The Company is hopeful of favorable decisions for the appeal pending before the Hon''able Supreme Court. The Hon''ble Supreme Court has granted stay until disposal of petition.

2 Mr. Kumar S. Taurani and Mr. Ramesh Taurani were re-appointed as Managing Director of the Company for the period of 3 (Three) years w.e.f. June 1, 2012 to 31st May, 2015 at a gross remuneration of Rs.1,50,00,000/- (Rupees One Crore Fifty Lacs) p.a. (i.e.12,50,000/- p.m.) pursuant to approval from the shareholders in their meeting held on 27th July, 2012. Application to pay the aforesaid remuneration for the aforesaid period was made to Central Government vide letter dated October 4, 2012. Approval for the same is awaited.

3 Trade receivables, trade payables and loans & advances are subject to confrmations and reconciliation, if any.

4 During the year ended 31st March 2013, the Company has taken additional write down of unamortised cost of production of flms of Rs. 1,852 lacs as per the management''s estimate of revenue potential of the said flms based on market conditions.

5 Provision for Tax

The current tax provision is based on tax payable on book profts computed u/s 115JB of the Income Tax Act, 1961. Credit for set off of this book proft tax is not recognized in the books in view of the uncertainty about future taxable profts.

6 DISCLOSURE REQUIRED AS PER ACCOUNTING STANDARDS ISSUED BY THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA.

a. Gratuity

i] Description of the Plan:

The Company has covered its gratuity liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued by LIC of India. Under the plan, employee at retirement is eligible for beneft, which will be equal to 15 days salary for each completed year of service subject to maximum limit of Rs. 10 lacs. Thus, it is a defned beneft plan and the aforesaid insurance policy is the plan asset.

ii] Principal actuarial assumptions:

Discount Rate is based on prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligation.

The salary escalation rate is based on estimate of salary increases, which take into account infation, promotion and other relevant factors.

d. Related Party Disclosures:

I] List of related parties and nature of their relationship is furnished below:

a) Subsidiaries : NIL

b) Key management personnel:

Kumar S. Taurani Chairman & Managing Director

Ramesh S. Taurani Managing Director

c) Relatives of key Management personnel

Mrs. Renu K. Taurani, Mrs. Varsha R. Taurani, Mr. Kunal K Taurani, Mr. Girish K Taurani, Ms. Sneha R Taurani and Ms. Jaya Taurani

7 Previous year''s fgures have been regrouped wherever necessary, to conform with current year''s fgures.

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Mar 31, 2012

A. Rights/Terms attached to Equity Shares

Company has only one class of shares referred to as equity shares having par value of Rs 10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors in their meeting held on 18th May 2012, proposed dividend of Rs2/- per equity share(in previous year Rs1.25 per equity share). In the event of liquidation of the company, the holders of the equity shares will be entitled to receive reaming assets of the company, after distribution of all preferential shares amounts. However no such preferential shares amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

c. Information on equity shares allotted without receipt of cash or allotted as bonus shares or shares bought back During the previous Financial Year 2010 - 11, the Company had bought back 13,47,200 Equity Shares of Rs.10/- each from open market at an average price of Rs. 47.50/-.

TERM LOANS FROM BANKS

1. Term Loan from Axis Bank is repayable in 36 monthly Installments of Rs.101646/- each from the date of loan viz. 07/08/2009. The Loan is secured by hypothecation of related Vehicle.

2. Term Loan from ICICI Bank is repayable in 36 monthly Installments of Rs.109340/- each from the date of loan viz. 15/10/2010. The Loan is secured by hypothecation of related Vehicle.

3. Term Loan from HDFC Bank is repayable in 48 monthly Installments of Rs.37,50,000/- each plus Interest from the date of loan viz. 16/08/2010. The Loan is secured by hypothecation of Commercial Premises of the Company at Mumbai. Further the Loan has been guaranteed by the personal guarantee of one of the Director and Pledge of 5,00,000 Equity Shares of the Company.

4. Term Loan from BMW India Financial is repayable in 36 monthly Installments of Rs.65,771/- each from the date of loan viz. 01/09/2011. The Loan is secured by hypothecation of related Vehicle. Further the Loan has been guaranteed by the personal guarantee of one of the Director

5. Term Loan from Future Capital Holding Ltd is repayable in 120 monthly Installments of Rs.6,65,775/- each from the date of loan viz. 07/05/2011. The Loan is secured by hypothecation of Residential Premises and personal guarantee of one of the Director.

6. Term Loan from Relegate Finevest Ltd. is repayable in 129 monthly Installments of Rs.8,06,675/- each from the date of loan viz. 01/07/2011. The Loan is secured by hypothecation of Commercial Premises at Mumbai. Further the Loan has been guaranteed by the personal guarantee of one of the Director

7. Term Loan from ICICI Bank is repayable in 36 monthly Installments of Rs.3,18,705/- each from the date of loan viz. 15/03/2012 and is secured by hypothecation of related Vehicle.

8. Term Loan from Kotak Mahindra Bank is repayable in 36 monthly Installments of Rs.38,644/- each from the date of loan viz. 28/03/2012 and is secured by hypothecation of related Vehicle.

1. Contingent Liabilities:

As on As on

31-03-12 31-03-11

a) Counter Guarantees given to 28.55 54.98 a Bank on behalf of Managing

Director

b) Penalty under FEMA Act * 90.00 90.00

* The Company is hopeful of favorable decisions for the appeal pending before the Hon'able Supreme Court. The Hon'ble Supreme Court has granted stay until disposal of petition.

2. Mr. Ramesh S. Taurani was re-appointed as the Managing Director of the Company for the period of 5 (Five) years w.e.f April 1, 2008 at a gross remuneration of Rs. 90/- per annum and approval from the shareholders for the same was obtained in the Annual General Meeting held on 26-9-2008. In September 2009, since the remuneration was exceeding the limits prescribed in Such XIII of the companies Act, 1956, the Company made an application to the Central Government for payment of remuneration of Rs. 90/- for a period of 5 years till 31-3-2013. The Central Government vide its order dated 27th April, 2011 gave the approval to pay the aforesaid remuneration till 31-3-2010. A fresh application for the remaining term of his office for the period 01-04-2010 to 31-03-2013 was made on 23rd May 2011.Pending approval of the Central Government, remuneration of Rs. 180/- for the Financial Years 2010-11 & 2011-12 is paid by the company.

3. Note on Fixed Assets sold:

a) The company during the F. Y 2008-09 had made provision for write-off of audio cassettes duplicating machines of the gross value of which was Rs. 4,63,68,335/- and the Net Assets Value was Rs. 2,08,16,492/-. The realizable value of the machines were determined at Rs. 5,00,000/- and the same was shown in the Balance Sheet under the heading "Assets Held For Disposal'. The Profit & Loss

Account was debited with Rs. 2,03,16,492/- under the heading "Loss on Assets Awaiting Disposal'. During the current financial year the entire machinery was sold (refer Para B hereunder).

b) Due to change in the technology, the audio cassette machine had become obsolete hence the entire Audio Cassettes machines (including the earlier machines held for disposal as mentioned in Para A above) have been sold in the current financial year. The total value realized from the sale of entire machinery (including the earlier machinery held for disposal as mentioned in Para A above) is Rs. 4,69,000/-. In the current financial year the Profit & Loss Account has been debited with Rs. 3,76,16,524/- under the heading "Loss on Sale of Assets"

4. Sundry Debtors, Sundry Creditors and balances of advances are subject to confirmations and reconciliation, if any.

5. Provision for Tax:

The current tax provision is based on tax payable on book profits computed u/s 115JB of the Income Tax Act, 1961. Credit for set off of this book profit tax is not recognized in the books in view of the uncertainty about future taxable profits.

6. DISCLOUSER REQUIRED AS PER ACCOUNTING STANDARDS ISSUED BY THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA.

a. Gratuity

i] Description of the Plan:

The Company has covered its gratuity liability by a Group Gratuity Policy named "Employee Group Gratuity Assurance Scheme' issued by LIC of India. Under the plan, employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the plan asset.

c) Relatives of key Management personnel

Mrs. Renu K. Taurani, Mrs. Varsha R. Taurani, Mr. Kunal K Taurani, Mr. Girish K Taurani and Ms. Sneha R Taurani

d) Other Related Parties (Entities in which Directors/Partners or their relatives have significant influence)

Tips Exports, Tips Finance and Lachmi Sadhuram Taurani Charitable Trust

7. Previous year's figures have been regrouped wherever necessary, to conform with current year's figures.

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Mar 31, 2011

1. Pursuant to the Public Announcement (PA) and Corrigendum to PA dated 3rd March 2010 and 3rd June 2010 respectively, for Buyback of Company's shares from the open market at a price not exceeding Rs. 75/- per share for an aggregate amount not exceeding Rs. 1,98,100, the Company bought back 13,47,200 no of equity shares during 11th June 2010 to 23rd Aug 2010 at a total consideration of Rs. 63,996 (exclusive of brokerage of Rs. 131), at an average price of Rs.47.50 per share. All the shares bought-back have been extinguished and the requisite returns for completion of buyback were filed with the Stock Exchange Board of India (SEBI)/Stock Exchanges and the Registrar of Companies.

2. Loans

Secured Loans from Banks :

Cash Credit Loans are secured by mortgage of deposit of title deeds of Land and Building situated at Silvassa and Palghar and first charge, ranking pari passu by way of hypothecation of Raw materials, Finished Goods and Book Debts are further secured by personal guarantee / mortgage of properties owned by one of the directors of the Company/ relatives.

Term Loans from bank are secured by hypothecation and mortgage of the properties. Out of total Term Loans of Rs. 1,95,050 (Previous year Rs. 2,95,180) outstanding as on balance sheet date, Rs. 45,000 (Previous year Rs. 1,24,555) are payable within one year. The loans are counter guaranteed by the Managing Director.

Vehicle loans are secured by hypothecation of vehicles acquired on equitable monthly installment (EMI) system. The amount repayable within the financial year 2011-12 is Rs. 2,532 (Previous year Rs. 1,246).

Unsecured Loans

Unsecured Loans repayable within 1 year is Rs. 2,35,400/- (Previous year Rs. 1,41,200/-)

3. Change in the accounting policy in respect of amortization of cost of production of feature films:

Hitherto, Company was following the policy of inventorising the cost of feature films (produced or acquired) to be charged to Profit and Loss Account on release of films in the ratio of current revenue to the total expected revenue. Further, at the end of each accounting period company reassessed the expected revenue / realizable value of the balance unamortized cost and in the event of the net realizable value being less than unamortized cost, the same was written down to the net realizable value. During the year, Company has reviewed its accounting policy in respect of amortization of cost of production of feature films and has revised the said policy keeping in mind the ever-changing revenue streams / patterns as also with the objective of bringing it in line with the policy followed generally by the Entertainment Industry. [Refer Significant accounting policies no. 10(iv) of Schedule 21 for revised accounting policy that the company has now adopted and would follow consistently in future].

The changed policy is being implemented with effect from 1st October 2009 and would, as such, apply to films released on or after that date. Due to the change in the said policy, Cost of feature film charged for the year ended 31st March 2011 is lower by Rs. 1,79,042. Further consequent to this change excess cost amortised in the year ended 31st March 2010 in the amount of Rs. 75,116 has been written back and has been credited to the profit and loss account. As a result, Profit / (Loss) after tax for the year ended is stated higher / (lower) by Rs. 2,54,159.

4. Contingent Liabilities:

As on As on

31-03-11 31-03-10

a) Counter Guarantees given to a Bank on behalf of Managing Director 5,498 7,937

b) Penalty under FEMA Act * 9,000 9,000

* The Company is hopeful of favorable decisions for the appeal pending before the Hon'able Supreme Court. The Hon'ble Supreme Court has granted stay until disposal of petition.

6. For the purposes of valuation of inventories of finished goods, the cost of copyright (audio/video-film) and in-house music production costs are considered as costs as per the method consistently followed. However, in absence of records of title wise stock and considering the volume of inventory of finished goods, the entire such cost is apportioned on the stock of saleable inventory, on an average basis [apportioned cost aggregates to NIL (Previous year Rs. 7,608)], which will not have any impact on the valuation of inventories.

7. Sundry Debtors, Sundry Creditors and balances of advances are subject to confirmations and reconciliation, if any.

8. Current Assets include Fixed Assets held for disposal Rs. 500 (Previous Year Rs. 500) being realizable value estimated by the Management.

9. Provision for Tax:

The current tax provision is based on tax payable on book profits computed u/s 115JB of the Income Tax Act, 1961. Credit for set off of this book profit tax is not recognized in the books in view of the uncertainty about future taxable profits.

10. Based on the information available with the Company, no creditors have been identified as "Suppliers" within the meaning of Micro, Small and Medium Enterprises Development Act, 2006.

11. Liabilities towards Investor Education and Protection Fund U/s 205A of the Companies Act, 1956 not due.

12. During the year Company has paid NIL (Previous year Rs. 200) as donation to a Political Party.

13. Gratuity

i] Description of the Plan:

The Company has covered its gratuity liability by a Group Gratuity Policy named 'Employee Group Gratuity Assurance Scheme' issued by LIC of India. Under the plan, employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the plan asset.

14. Related Party Disclosures:

I] List of related parties and nature of their relationship is furnished below:

a) Subsidiaries NIL

b) Key management personnel

Kumar S. Taurani Chairman & Managing Director

Ramesh S. Taurani Managing Director

c) Relatives of key Management personnel

Mrs. Renu K. Taurani,

Mrs. Varsha R. Taurani,

Mr. Kunal K. Taurani,

Mr. Girish K. Taurani

Ms. Sneha R. Taurani

d) Other Related Parties (Entities in which Directors/Partners or their relatives have significant influence) Tips Exports, Tips Finance and Lachmi Sadhuram Taurani Charitable Trust

15. Previous year's figures have been regrouped wherever necessary, to conform with current year's figures.

---

Mar 31, 2010

1. Contingent Liabilities:

As on As on 31-03-10 31-03-09 (Rupees) (Rupees)

a) Counter Guarantees given to a Bank on behalf of Managing Director 7,937 10,452

b) Penalty under FEMA Act 9,000 9,000

The Company is hopeful of favorable decisions for the appeal pending before the Honble Supreme Court. The Honble Supreme Court has granted stay until disposal of petition.

2. Secured Loans:

From Banks:

Cash Credit Loans are secured by mortgage of deposit of title deeds of Land and Building situated at Silvassa and Palghar and first charge, ranking pari passu by way of hypothecation of Raw materials, Finished Goods and Book Debts are further secured by personal guarantee / mortgage of properties owned by one of the directors of the Company/ relatives.

Term Loans from bank are secured by hypothecation of negatives of the film prints and mortgage of the properties. Out of total Term Loans of Rs. 2,95,180 (Previous year Rs. 3,67,010) outstanding as on balance sheet date, Rs. 1,24,555 (Previous year Rs. 2,17,010) are payable within one year. The loans are counter guaranteed by the Managing Director.

Vehicle loans are secured by hypothecation of vehicles acquired on equitable monthly installment (EMI) system. The amount repayable within the financial year 2010-11 is Rs. 1,246 (Previous year Rs. 296).

From Others:

Loans from others is from LIC of India and is secured by Keyman Insurance Policy lodged with them.

3. Investment:

i] During the year the company has applied for purchase of equity shares (face value Rs. 10 per share) of Label Mobile Media Pvt. Ltd and these are pending for allotment. No. of shares applied : 5,000 (Previous year NIL)

Amount invested : Rs. 50,000/- (Previous year NIL)

4. Gratuity:

i] Description of the Plan:

The Company has covered its gratuity liability by a Group Gratuity Policy named Employee Group Gratuity Assurance Scheme issued by LIC of India. Under the plan, employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the plan asset.

5. For the purposes of valuation of inventories of finished goods, the cost of copyright (audio/video-film) and in-house music production costs are considered as costs as per the method consistently followed. However, in absence of records of title wise stock and considering the volume of inventory of finished goods, the entire such cost is apportioned on the stock of saleable inventory, on an average basis [apportioned cost aggregates to Rs. 7,608 (Previous year Rs. 7,011)], which in the opinion of management will not have any material impact on the valuation of inventories (amount unascertained).

6. Shareholders have approved buyback of equity shares of the Company (not exceeding 25% of the Paid up Capital) at a maximum price of Rs. 75/- per share through open market route. The follow on steps and related time frame for the same is yet to be crystallized by the Company.

7. Sundry Debtors, Sundry Creditors and balances of advances are subject to confirmations and reconciliation, if any.

8. Current Assets include Fixed Assets held for disposal Rs. 500 (Previous Year Rs. 500) being realizable value estimated by the Management.

9. Provision for Tax:

The current tax provision is based on tax payable on book profits computed u/s 115JB of the Income Tax Act, 1961. Credit for set off of this book profit tax payable is not recognized in the books in view of the uncertainty about future taxable profits.

10. Related Party Disclosures:

I] List of related parties and nature of their relationship is furnished below: a) Subsidiaries NIL

b) Key management personnel

Kumar S. Taurani Chairman & Managing Director

Ramesh S. Taurani Managing Director

c) Relatives of key Management personnel

Mrs. Renu K. Taurani

Mrs. Varsha R. Taurani

Mr. Kunal K Taurani

d) Other Related Parties (Entities in which Directors/Partners or their relatives have significant influence) Tips Exports

Tips Finance

Lachmi Sadhuram Taurani Charitable Trust

11. Based on the information available with the Company, no creditors have been identified as "Suppliers" within the meaning of Micro, Small and Medium Enterprises Development Act, 2006.

12. During the year the Company has paid Rs. 200 (Previous year Rs. 200) as donation to Bharatiya Janata Party - A Political Party.

13. Previous years figures have been regrouped wherever necessary, to conform with current years figures.