Home  »  Company  »  Zee Media Corp  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Zee Media Corporation Ltd. Company

Mar 31, 2013

A Basis of preparation

the financial statements are prepared under the historical cost convention on going concern basis in accordance with Indian Generally Accepted Accounting Principles (GAAP) and comply in all material aspects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the securities and exchange Board of india (SeBI). The Company follows the mercantile system of accounting and recognises income and expenditure on accrual.

B use of estimates

the preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, on the date of the financial statements and the reported amount of revenue and expenses of the year. difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

C tangible fixed assets

a) Tangible fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. the cost comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Integrated Receiver Decoders (IRD) boxes are capitalised, when available for deployment.

b) Capital work in progress comprises cost of fixed assets and related expenses that are not yet ready for their intended use at the reporting date.

d Intangible assets

intangible assets acquired are measured on initial recognition at cost and stated at cost less accumulated amortisation and impairment loss, if any.

E Borrowing costs

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 expensed in the year they occur.

F Impairment of tangible and intangible assets

At each Balance Sheet date, the Company reviews the carrying amount of assets to determine whether there is an indication that those assets have suffered impairment loss. if any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. the recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

G. depreciation / Amortization on tangible / intangible assets

a) Depreciation on tangible fixed assets is provided on straight line method at the rates specified in Schedule XIV to the Companies Act, 1956.

b) Leasehold Improvements are amortised over the period of Lease.

c) Intangible assets are amortised on a straight line basis over the economic useful life estimated by the management.

H Investments

a) Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

b) Current investments are stated at lower of cost and market value determined on an individual investment basis. Long-term investments are stated at cost less provision for diminution other than temporary in the value of such investments.

I transactions in foreign currencies

a) Foreign currency transactions are accounted at the exchange rates prevailing on the date of such transaction.

b) Foreign currency monetary items are translated using the exchange rate prevailing at the reporting date. exchange differences arising on settlement of monetary items or on reporting such monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements are recognised as income or as expenses in the year in which they arise.

c) Non-monetary foreign currency items are carried at cost.

J revenue recognition

a) Broadcasting revenue - Advertisement revenue (net of discount and volume rebates) is recognized when the related advertisement or commercial appears before the public i.e. on telecast. subscription revenue is recognized on time basis on the provision of television broadcasting service to subscribers or as per the agreed terms.

b) Sales (including television programs and film rights) are recognized when the significant risks and rewards have been transferred to the customers.

c) Revenue from other services including franchisee fee revenue is recognized as and when such services are completed / performed.

d) Dividend income is recognized when the Company''s right to receive dividend is established.

e) Interest income is recognized on a time proportion basis taking into account principal outstanding and the applicable interest rate.

K Inventories

a) Inventories of television programs (completed, under production, available for sale) and film rights are stated at lower of cost or net realisable value. Cost includes direct production costs and other allocated production overheads. where the realisable value on the basis of its estimated useful life is less than its carrying amount, the difference is expensed as impairment. Cost of news / current affairs / chat shows / events etc are fully expensed on telecast.

b) Raw Stock – Tapes are valued at lower of cost or estimated net realizable value. Cost is taken on weighted average basis.

L retirement and other employee benefits

a) Short-term employee benefits are expensed at the undiscounted amount in the statement of Profit and Loss in the year the employee renders the service.

b) Post employment and other long term employee benefits are recognized as an expense in the statement of Profit and Loss at the present value of the amount payable determined using actuarial valuation techniques in the year the employee renders the service. Actuarial gains and losses are charged to the statement of Profit and Loss .

M Accounting for taxes on income

a) Current Tax is determined as the amount of tax payable in respect of taxable income as per the provisions of the Income Tax Act, 1961.

b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates and laws.

N Leases

a) Finance lease

Assets acquired under Finance Lease are capitalized and the corresponding lease liability is recorded at an amount equal to the fair value of the leased asset at the inception of the lease. initial costs directly attributable to lease are recognized with the asset under lease.

b) operating lease

Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under operating leases are recognized as expense on accrual basis in accordance with the respective lease agreements.

O Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except when the results would be anti-dilutive.

p provisions, Contingent liabilities and Contingent assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

A Basis of preparation of Financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis and comply in all material aspects with the accounting standards as notified under Section 211(3C), the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBi).

B use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reporting amounts of assets and liabilities, as of the date of financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from these estimates. Any revision to estimates is recognized prospectively in current and future periods.

C Tangible Fixed Assets

a) Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprise purchase price, borrowing cost and directly attributable cost of bringing the assets to its working condition for the intended use.

b) Capital work in progress comprises cost of fixed assets that are not yet ready for their intended use at the reporting date.

D Intangible Assets

intangible assets acquired are measured on initial recognition at cost. intangible assets are carried at cost less accumulated amortization and accumulated impairment loss, if any.

E Borrowing Costs

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 capitalized as part of the cost of respective asset. All other borrowing cost are expensed in the period they occur.

F impairment of tangible and intangible Assets

At each Balance Sheet date, the Company reviews the carrying amount of assets to determine whether there is an indication that those assets have suffered impairment loss. if any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

G depreciation on tangible and intangible Assets

a) Depreciation on tangible fixed assets is provided on Straight Line Method at the rate specified in Schedule XiV to the Companies Act, 1956.

b) Leasehold improvements are amortized over the period of Lease.

c) intangible assets are amortized on a straight line basis over the economic useful life estimated by the management.

H investments

a) investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

b) Current investments are stated at lower of cost and fair value determined on an individual investment basis. Long-term investments are stated at cost less provision for diminution other than temporary in the value of such investments.

i transactions in Foreign Currencies

a) Foreign currency transactions are accounted at the exchange rates prevailing on the date of such transactions.

b) Foreign currency monetary items are retranslated using the exchange rates prevailing at the reporting date. Exchange difference are recognized as income or expense in the period in which they arise.

c) Non-monetary items denominated in foreign currency are carried at cost.

J Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits that will flow to the Company and the revenue can be reliably measured. Revenue recognition is as under :-

a) Broadcasting revenue - Advertisement revenue (net of agency commission) is recognized when the related advertisement or commercial appears before the public i.e. on telecast. subscription revenue is recognized on completion of service.

b) sales (includes licensing of Programs, movies and Rights) are recognized when the delivery is completed.

c) Franchisee Fee - Franchisee fee is recognized proportionately over the period of service.

d) dividend income is recognized when the Company's right to receive dividend is established by the reporting date.

e) interest income is recognized on a time proportion basis taking into account outstanding and the applicable interest rate.

f) Revenue from other services are recognized as and when such services are completed / performed.

K Inventories

a) Programs/ Film Rights :

Programs/ Film Rights are carried at lower of unamortized cost or realizable value. where the realizable value on the basis of its useful economic life is less than its carrying amount, the difference is expensed as impairment.

i) Cost of news/ current affairs/ chat shows/ events etc are fully expensed in the year incurred.

ii) Cost of Programs (other than (i) above) are amortized over three financial years from the year of telecast as per management estimates of future revenue potential.

iii) Cost of movie rights are charged on a straight- line basis over the license period or 60 months from the date of acquisition, whichever is shorter.

b) Work- in - progress- Programs and movies under production are stated at cost. Cost comprises of raw stock, cost of services and other expenses incurred upto the date of balance sheet.

c) Raw stock - tapes are valued at lower of cost or estimated net realizable value. during the year, cost formula for valuation of raw stock is changed to Moving Weighted Average Basis instead of First in First Out Basis followed till the previous year ended March 31, 2011. due to change in the cost formula, current year tape consumption is higher by Rs52,229 and inventory value is lower by the same amount.

L retirement and other Employee Benefits

a) short-term employee benefits are expensed at the undiscounted amount in the statement of Profit and Loss in the year employee renders the service.

b) Post employment and other long term employee benefits are expensed in the statement of Profit and Loss in the year the employee render the service. the expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the statement of Profit and Loss.

M Accounting for Taxes on income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year as per the provisions of the income tax Act, 1961.

b) deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using enacted tax rates and laws.

N Leases

a) Finance Lease

Assets acquired under Finance Lease are capitalized and the corresponding lease liability is recorded at an amount equal to the fair value of the leased asset at the inception of the lease. initial costs directly attributable to lease are recognized with asset under lease.

b) Operating Lease

Lease of assets under which all the risk and rewards of ownership are effectively retained by the lesser are classified as operating leases. Lease payments/ revenue under operating leases are recognized as expense/income on accrual basis in accordance with the respective lease agreements.

O Earnings Per Share

Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the year. dilutive earnings per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti-dilutive.

p provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

1. Basis of Accounting:

The Financial Statements have been prepared under the Historical Cost Convention and on accrual basis in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. Use of Estimates:

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of the financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from these estimates. Any revision to estimates is recognised prospectively in current and future periods.

3. Fixed Assets:

a) Fixed assets are stated at original cost of acquisition/installation net of accumulated depreciation, amortization and impairment losses. The cost of fixed assets includes taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets.

b) Capital Work-in-progress is stated at the amount expended upto the date of Balance Sheet including advance for capital expenditure.

c) Computer software is capitalized as an intangible asset in the year it is put to use.

4. Borrowing Costs:

Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of the cost of such assets. All other borrowing costs are charged to revenue.

5. Depreciation/Amortization:

a) Depreciation on fixed assets is provided on Straight-Line Method at the rate specified in Schedule XIV of the Companies Act, 1 956.

b) Leasehold Improvements are amortized over the period of Lease.

c) Computer software is amortised over a period of three years based on managements estimate of useful life.

6. Investments:

Investments intended to be held for more than one year, from the date of acquisition, are classified as long term investments and are carried at cost. Provision for diminution in value of these investments is made to recognize a decline other than temporary. Current investments are carried at lower of cost or fair value.

7. Programs/Film Rights and Inventories:

a) Programs/Film Rights.

Programs/Film Rights are stated at the lower of net cost (cost minus accumulated amortization/impairment) or realizable value. Where the realizable value on the basis of its useful economic life is less than its carrying amount, the difference is expensed as impairment.

i. Cost of news/ current affairs/ chat shows/ events etc. are fully expensed.

ii. Programs [other than (i) above] are amortized over three financial years from the year the related program is telecast, as per management estimate of future revenue potential.

iii. Film rights are amortized on a straight-line basis over the license period or 60 months from the date of purchase whichever is shorter.

b) Inventory of Raw Stock - Tapes are valued at lower of cost or estimated net realizable value. Cost is taken on First-In-First-Out (FIFO) basis.

8. Retirement Benefits:

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

b) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined at Balance Sheet date using acturial valuation techniques. Acturial gains and losses in respect of post employment and other long-term benefits are charged to the Profit and Loss Account.

9. Transactions in Foreign Currencies:

a) Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transaction.

b) Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing on the date of Balance Sheet. Gains and losses arising on account of settlement/translation of monetary assets and liabilities are recognized in the Profit and Loss Account. Non-monetary items are reported using exchange rate prevailing on the date of transaction.

10. Revenue Recognition:

a) Broadcasting Revenues: Advertisement revenue (net of agency commission) is recognized when the related advertisement or commercial appears before the public i.e. on telecast. Subscription revenue is recognized on completion of service.

b) Sales (Programs/Film Rights) are recognized when the risk and rewards of ownership are passed onto the customers, which is generally on dispatch of goods.

c) Income from services is recognised proportionately over the period of service.

d) Dividend is recognised when the right to receive the dividend is unconditional.

11. Taxes on Income:

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year under the Income Tax Act, 1961.

b) Deferred tax is recognized, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

12. Operating Lease:

Lease of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under operating leases are recognized as an expense on accrual basis in accordance with the respective lease agreements.

13. Impairment of Assets:

At each Balance Sheet date, the Company reviews the carrying amount of fixed assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

14. Earnings Per Share:

Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Diluted earnings per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti dilutive.

15. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
Subscribe now to get personal finance updates in your inbox!