Mar 31, 2015
Accounting Policies no specifically referred to otherwise are
consistent and in consonance with Generally Accepted Accounting
Principles.
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
a) The Financial Statements have been prepared under the historical
cost convention in accordance with the Generally Accepted Accounting
Principles and the provisions of the Companies Act, 1956 as adopted
consistently.
b) The Company follows mercantile system of Accounting and recognizes
significant items of income & expenditure on accrual basis unless
stated otherwise elsewhere.
2. FIXED ASSETS
Fixed Assets are stated at Original Cost less Depreciation.
3. INVENTORIES
Finished Goods, Negative Rights and Other Stock are Valued at cost.
Unamortised cost of production of feature films - The Company amortizes
60% of the cost of movie rights acquired or produced by it, on first
theatrical release of the movie. The said amortization is made
proportionately based on management's estimate of revenues pertaining
to domestic theatrical rights, international theatrical rights,
television rights, video rights and others over a period of 12 months
from the date of theatrical release of the movie.
The balance 40% of the cost of acquisition or cost of production is
amortized as per the management's estimate / review of future revenues
but not exceeding nine years and subject to a minimum of 4.44% in any
year.
4. DEPRECIATION
The Depreciation has been calculated on the Straight Line Method over
the useful lives and manner as prescribed in the Schedule II of the
Companies Act 2013.
5. Extraordinary Items
The extra-ordinary items are income or expenses that arise from events
or transactions that are clearly distinct from the ordinary activities
of the enterprise and therefore not expected to recur frequently or
regularly. The profit or loss from extraordinary items have been
disclosed separately in the statement of profit and loss.
5. REVENUE RECOGNITION
Revenue on sales of goods is recognized only when it is probable that
the economic benefits will flow to the company and revenue can be
reliably measured. Revenue from operations includes sale of goods,
services, freight and insurance and price variation and are net of
sales tax/ VAT wherever applicable.
Revenue in respect of contracts for services is recognized on when the
services are rendered and related costs are incurred.
Revenue from theatrical sales/ distribution is recognized on exhibition
of films. In case of distribution through theatres, revenue is
recognized on the basis of box office reports of collection received
from various exhibitors on a net collection basis. Contracted minimum
guarantees are recognized on theatrical release. In case of Jointly
Controlled Operations proportionate revenue and expenses attributable
to the company are recognized in the financial statements, as per terms
of joint venture agreement in accordance with Accounting Standard 27
issued by Institute of Chartered Accountants of India.
Sale of films rights is recognized on effective delivery of materials
to customers as per terms of the sale agreements. Sale of overseas
rights is recognized on assignment of such rights, as per respective
agreements.
6. EMPLOYEE BENEFITS
Short term benefits to employees have been charged as expense in the
profit and loss account of the year in which respective services are
rendered by the employee.
Provident fund contribution, ESI contribution by employer and deduction
made from the employees are remitted to respective departments of which
funds are managed by central government. Employer's contribution is
charged to profit and loss account of the respective year.
7. SEGMENTAL REPORTING
The company primarily operates in Production of Feature Films segment
of business. There are no reportable segments of business as defined
under the Accounting Standard 17 issued by Institute of Chartered
Accountants of India.
8. EARNINGS PER SHARE
Basic/ diluted earnings per share is computed by dividing the profit /
(loss) after tax (including the post tax effect of extraordinary items,
if any) and after reducing the dividend obligation (including dividend
distribution tax) on preference shares by the weighted average number
of equity shares outstanding during the year.
9. TAXES ON INCOME
The tax expense is the aggregate of current year tax and deferred tax
charged or credited to the profit and loss statement for the year.
a. Current tax is the provision made for income tax liability on the
profits for the year in accordance with the applicable tax laws.
b. Deferred tax is recognized on timing differences, being the
difference resulting from the recognition of items in the financial
statements and in estimating its current income tax provisions.
c. Deferred tax liability is measured using the tax rates and the tax
laws that have been enacted or substantially enacted at the balance
sheet date.
10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS.
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be a 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.
11. NON-APPLICATION OF AS-28 "IMPAIRMENT OF ASSETS".
The objective of AS-28 is to ensure that the assets of an organization
are carried at no more than its recoverable amounts. If the carrying
amount exceeds the recoverable amount, then "Loss on Impairment of
Assets" needs to be recognized in the books.
The company is in possession of old plant and machinery lying at RIICO
Industrial Area, Sitapura, Jaipur on which the company has not
recognized "Loss on Impairment of Assets" in its financial statements
as required by AS-28 issued by The Institute of Chartered Accountants
of India due to non-determination of Recoverable amounts of its assets
by the company.
12. INTEREST IN JOINT VENTURES
The company has entered into following Joint Venture Agreements as
Jointly Controlled Operations of production of feature film. The
company has recognized the proportionate share of expenses it incurred
and proportionate share of the income earned from jointly controlled
operations in its financial statements in accordance with Accounting
Standard 27 issued by Institute of Chartered Accountants of India.
S.N. Particulars Share of JV
(Respectively)
1 BMB Music & Magnetics Limited, 50%
Bloomberg Entertainment Pvt Ltd 25%
and Sonia Films Pvt Ltd 25%
13. PENDING LITIGATIONS AGAINST THE COMPANY
There are no litigations filed against the company and hence there is
impact on the financial position of the company.
14. NOTES ON ACCOUNTS & AUDITOR'S OBSERVATIONS
1. The balances of sundry debtors, sundry creditors, Loans and advances
and unsecured loans accounts are subject to confirmations from these
parties.
2. The bank balances are subject to reconciliation from respective
banks.
3. In absence of necessary information with the company relating to the
registration status of suppliers under the Micro, Small and Medium
Enterprises Development Act, 2006, the information required under the
said act could not be compiled and disclosed.
15. QUANTITY INFORMATION
As the company has not taken up any production activity during the
year, the quantity information is NIL.
Mar 31, 2014
Not Available.
Mar 31, 2012
A) Rasis of Accounting:
by the Institute of Chartered Accountants of India.
The preparation, of financial affec the ''reported
liabilities and the disclosures relating to of fixed assets,
provision for
b) Revenue recognition
Revenue on accrual basis and in Revenue recognized and expenses inci
Sales are recognized on accordance with the requirements of the
Companies aci, dispatch of goods to Customers.
c) Fixed Assets:
Fixed assets are stated at Original cost less depreciation
d) Depreciation:
Depreciation is provided on a pro-rata basis, from the date the assets
have been installed and put to use, Strgigh Line Method at the rates
and in the manner specified under schedule XIV to the Companies Act,
1956.
e) Inventorie.si-
Finished Goods, Negative Rights and otherstock are valued at cost.
f) Prepared as per the Revised Schedule reclassified to confirm to the
Affairs. Previous Year figure have be®r''Snafiqures of the current
year. Adoption of and recognition principles followed in preparation of
the financial statements.
Mar 31, 2010
Accounting Policies no specifically referred to otherwise are
consistent and in consonance with Generally Accepted Accounting
Principles.
1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS :
a) The Financial Statements have been prepared under the historical
cost convention in accordance with the Generally Accepted Accounting
Principles and the provisions of the Companies Act, 1956 as adopted
consistently.
b) The Company follows mercantile system of Accounting and recognizes
significant items of income & expenditure on accrual basis unless
stated otherwise elsewhere.
2 FIXED ASSETS
Fixed Assets are stated at Original Cost less Depreciation.
3. INVENTORIES
Finished Goods, Negative Rights and Other Stock are Valued at cost.
4. DEPRECIATION
The Depreciation has been calculated on the Straight Line Method at the
rates and in the manner prescribed in the Schedule XIV to the Companies
Act, 1956.
5. REVENUE RECOGNITION
i) All other expenditures are accounted on accrual basis except
circumstances mentioned below in notes on accounts.
ii) Figures of the Previous Year have been rearranged where necessary.
iii) In the opinion of the Board of Directors of the Company the
current assets and loans & advances have a value on realization in the
ordinary course of the business approximately the amount at which they
are stated.