Mar 31, 2015
1.01 Basis for preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention ignoring, if any, purchasing power of money and on
accounting principles of "going concern". All income and expenditure
having a material bearing on the financial statements are recognized on
accrual basis. Pursuant to section 133 of the Companies Act 2013 read
with rule 7 of the Companies (Accounts) Rules, 2014, till the standards
of accounting or any addendum thereto are prescribed by Central
Government in consultation and recommendation of the National Financial
Reporting Authority, the existing Accounting Standards notifies under
the Companies Act 1956 shall continue to apply. Consequently, these
financial statements have been prepared to comply in all material
aspects with the accounting standards notified under sections211(3C) of
the Companies Act 1956 (Companies (Accounting Standard) Rules,2006, as
amended ) and other relevant provisions of the Companies Act 2013.
The Company's operating results continue to be materially affected by
various factors such as increasing carriage cost, human resource cost
etc. The Company has continuously implemented various measures such as
improving operational efficiencies; renegotiation of contracts and
other cost control measures to improve the Company's operating results
and cash flows. In addition, the Company is in process of reviving 'the
Channel' along with modernizing equipments, recruitment of senior
staff, arrangements with various television channel distributors so
that the channel could be seen on the maximum possible networks and the
viewer ship could be increased. Accordingly, the Company's financial
statements have been prepared on a going concern basis whereby the
realization of assets and discharge of liabilities are expected to
occur in the normal course of business.
1.02 Use of Estimates
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumption that
affect the reported amounts of assets and liabilities and disclosure
relating to contingent liability at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.
1.03 Revenue Recognition
Advertisement revenue (net of agency commission) is recognized on
accrual basis when respective advertisement or commercial appears on
the channel/website/mobile app or as per the terms with advertising
agencies.
In respect of interest income, it is recognized on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
1.04 Fixed Assets
Tangible Assets:
Tangible assets are stated at acquisition cost, net of accumulated
depreciation and accumulated impairment losses. Subsequent expenditures
related to an item of fixed assets are added to its book value only if
they increase the future benefits from the existing asset beyond its
previously assessed standard of performance.
Losses arising from the retirement of and gains or losses arising from
disposal of fixed assets which are carried at cost are recognised in
the Statement of Profit and Loss.
Intangible Assets:
Intangible assets are stated at acquisition cost, net of accumulated
amortization and accumulated impairment losses, if any, Intangible
assets are amortised on a straight line basis over their estimated
useful lives.
Gains or losses arising from the retirement or disposal proceeds and
the carrying amount of the asset and recognised as income or expense in
the Statement of Profit and Loss.
1.05 Depreciation
Depreciation is provided on a Straight Line Method over the estimated
useful life of assets. Effective 1st April, 2014, the Company
depreciates its fixed assets over the useful life in the manner
prescribed in Schedule II of the Act, as against the earlier practice
of depreciating at the rates prescribed in Schedule XIV of the
Companies Act, 1956.
Cost of Channel Development capitalised is amortised over a period of
ten years.
Cost of Media Assets capitalised is amortised over a period of ten
years.
Cost of Decoders are fully amortised in the year acquisition itself.
Cost of Software capitalized is amortised over a period of three years.
1.06 Impairment of Asset
The carrying amounts of assets are reviewed of each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An Asset is impaired when the carrying amount of the asset
exceeds the recoverable amount. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. An impairment loss recognized in prior
accounting periods is reserved if there has been change in the estimate
of the recoverable amount.
1.07 Lease
Lease payments are charged to Statement of Profit and Loss Account over
the time period of the lease or other systematic basis more
representative of the time pattern of the user's benefit.
1.08 Foreign Currency Transaction
i. Initial Recognition
Foreign Currency transactions are recorded in the reporting currency by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the
transaction.
ii. Conversion
Foreign Currency monetary items are reported using exchange rate
prevailing as on 31st March or last working date near to the year end
date. Non-monetary items,which are carried in items of historical cost
denominated in a foreign currency, are reported using exchange rate at
the date of the transaction.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting company's monetary items at rates different from those at
which they were initially recorded during the year or reported in the
previous financial statement are recognized as income or expenses in
the year in which they arise.
1.09 Investments
Long term investments are stated at cost.
1.10 Employee Benefits
Post Employment Benefits Plan:
Payment to defined contribution of retirement benefit schemes is
charged to Statement of Profit and Loss when contributions to
respective funds are due.
For Defined benefit schemes, such as leave encashment and gratuity, it
is provided on the basis of actuarial valuation taken at the end of
each year. Other short - term employee benefits are charged to
Statement of Profit and Loss on accrual basis.
1.11 Borrowing Cost
Borrowing costs directly attributable to development of qualifying
asset are capitalised till the date qualifying asset is ready for put
to use for its intended purpose as part of cost of that asset. Other
borrowing costs are recognised as expenses in the period in which they
are incurred.
1.12 Taxes on Income
Tax expense comprises both current and deferred taxes. Current tax
provision as per Income tax Act,1961,is made based on the tax liability
computed after considering tax allowances and exemptions at the balance
sheet date.
Deferred income taxes reflect the impact of current year timing
difference between taxable income and accounting income for the year
and reversal of timing difference of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that, there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred tax assets are recognized on carry forward of unabsorbed
depreciation and tax losses only if there is virtual certainty that
such deferred tax assets can be realized against future taxable
profits.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date and written down or written up,to reflect the amount that is
reasonably/virtually certain,as the case may be, to be realized.
1.13 Earnings per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
1.14 Provisions Contingent Liabilities and Contingent Assets
Provisions:
A provision is recognized when the company has a present obligation as
a result of past event; it is probable that an outflow of resources
will be required to settle the obligation,in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based onbest estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Contingent Liabilities:
Contingent Liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the company or
a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
Contingent Assets:
Contingent Assets are neither recognized nor disclosed in the Financial
Statements.
Mar 31, 2014
1.01 Basis for preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention ignoring, if any, purchasing power of money and on
accounting principles of "going concern". All income and expenditure
having a material bearing on the financial statements are recognised on
accrual basis.
The Company''s operating results continue to be materially affected by
various factors such as increasing carriage cost, human resource cost
etc. The Company has continuously implemented various measures such as
improving operational efficiencies, renegotiation of contracts and
other cost control measures to improve the Company''s operating results
and cash flows. In addition, the Company is in process of reviving ''the
channel'' along with modernising equipments, recruitment of senior
staff, arrangements with various television channel distributors so
that the channel could be seen on the maximum possible networks and the
viewership could be increased. Accordingly, the Company''s financial
statements have been prepared on a going concern basis whereby the
realization of assets and discharge of liabilities are expected to
occur in the normal course of business.
1.02 Use of Estimates
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumption that
affect the reported amounts of assets and liabilities and disclosure
relating to contingent liability at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.
1.03 Revenue Recognition
Advertisement revenue (net of agency commission) is recognised on
accrual basis when respective advertisement or commercial appears on
the channel or as per the terms with advertising agencies.
In respect of interest income, it is recognised on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
1.04 Fixed Assets
Tangible fixed Assets are stated at cost of acquisition which includes
incidental expenses incurred for bringing the assets to the working
condition for their intended use.
1.05 Depreciation
Depreciation has been provided on straight line method on pro rata
basis at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956.
Channel development cost is amortized over a period often years on time
proportionate basis.
Depreciation on media assets has been provided @10% on Straight Line
Method.
Depreciation on decoders is provided @ 100%.
Software purchase is amortized @ 100%.
1.06 Foreign Currency Transaction
i. Initial Recognition
Foreign Currency transactions are recorded in the reporting currency by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the
transaction.
ii. Conversion
Foreign Currency monetary items are reported using exchange rate
prevailing as on 31 st March or last working date near to the year end
date. Non-monetary items, which are carried in items of historical cost
denominated in a foreign currency are reported using exchange rate at
the date of the transaction.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting company''s monetary items at rates different from those at
which they were initially recorded during the year, or reported in the
previous financial statement are recognized as income or expenses in
the year in which they arise.
1.07 Investments
Long term investments are stated at cost.
1.08 Employee Benefits
Post Employment Benefits Plan Payments to defined contribution of
retirement benefit schemes is charged to profit & loss account when
contributions to respective funds are due.
For Defined benefit schemes, such as leave encashment and gratuity, it
is provided on the basis of actuarial valuation taken at the end of
each year.
Other short-term employee benefits are charged to profit & loss account
on accrual basis.
1.09 Borrowing Cost
Borrowing costs directly attributable to development of qualifying
asset are capitalised till the date qualifying asset is ready for put
to use for its intended purpose as part of cost of that asset. Other
borrowing costs are recognised as expenses in the period in which they
are incurred.
1.10 Taxes on I ncome
Tax expense comprises both current and deferred taxes. Current tax
provision as per Income tax Act, 1961, is made based on the tax
liability computed after considering tax allowances and exemptions at
the balance sheet date.
Deferred income taxes reflect the impact of current year timing
difference between taxable income and accounting income for the year
and reversal of timing difference of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that, there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred tax assets are recognized on carry forward of unabsorbed
depreciation and tax losses only if there is virtual certainty that
such deferred tax assets can be realized against future taxable
profits.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date and written down or written up, to reflect the amount that
is reasonably/virtually certain, as the case may be, to be realised.
1.11 Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
1.12 Provisions
A provision is recognised when the company has a present obligation as
a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Mar 31, 2013
1.01 Basis for preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention ignoring changes, if any, purchasing power of money and on
accounting principles of "going concern". All income and expenditure
having a material bearing on the financial statements are recognised on
accrual basis.
1.02 Use of Estimates
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumption that
affect the reported amounts of assets and liabilities and disclosure
relating to contingent liability at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.
1.03 Revenue Recognition
Advertisement revenue (Net of agency commission) is recognised on
accrual basis when respective advertisement or commercial appears on
the channel or as per the terms with advertising agencies.
In respect of Interest Income, it is recognised on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
1.04 Fixed Assets
Tangible fixed Assets are stated at cost of acquisition which includes
incidental expenses incurred for bringing the assets to the working
condition for their intended use.
1.05 Depreciation
Depreciation has been provided on straight line method on pro rata
basis at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956.
Channel Development cost is amortized over a period of ten years on
time proportionate basis.
Depreciation on Media Assets has been provided @10% on Straight Line
Method.
Depreciation on Decoders is provided @ 100%.
Software Purchase has been amortized @ 100%.
1.06 Foreign Currency Transaction i. Initial Recognition
Foreign Currency transactions are recorded in the reporting currency by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the
transaction.
ii. Conversion
Foreign Currency monetary items are reported using exchange rate as on
31st March. Non-monetary items, which are carried in items of
historical cost denominated in a foreign currency are reported using
exchange rate at the date of the transaction.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting company''s monetary items at rates different from those at
which they were initially recorded during the year, or reported in the
previous financial statement are recognized as income or expenses in
the year in which they arise.
1.07 Investments
Long term investments are stated at cost.
1.08 Employee Benefits
Post Employment Benefits Plan
Payments to defined contribution of retirement benefit schemes is
charged to profit & loss account when contributions to respective funds
are due.
For Defined benefit schemes, such as leave encashment and gratuity, it
is provided on the basis of actuarial valuation taken at the end of
each year.
Other short -term employee benefits are charged to profit & loss
account on accrual basis.
1.09 Borrowing Cost
Borrowing costs directly attributable to development of qualifying
asset are capitalised till the date qualifying asset is ready for put
to use for its intended purpose as part of cost of that asset. Other
borrowing costs are recognised as expenses in the period in which they
are incurred.
1.10 Taxes On Income
Tax expense comprises both current and deferred taxes. Current tax
provision as per Income tax Act, 1961, is made based on the tax
liability computed after considering tax allowances and exemptions at
the balance sheet date.
Deferred income taxes reflect the impact of current year timing
difference between taxable income and accounting income for the year
and reversal of timing difference of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that, there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred tax assets are recognized on carry forward of unabsorbed
depreciation and tax losses only if there is virtual certainty that
such deferred tax assets can be realized against future taxable profits
.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date and written down or written up, to reflect the amount that
is reasonably/ virtually certain, as the case may be, to be realised.
1.11 Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
1.12 Provisions
A provision is recognised when the company has a present obligation as
a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Mar 31, 2012
1.01 Basis for preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention ignoring changes, if any, purchasing power of money and on
accounting principles of "going concern". All income and expenditure
having a material bearing on the financial statements are recognised on
accrual basis.
1.02 Use of Estimates
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumption that
affect the reported amounts of assets and liabilities and disclosure
relating to contingent liability at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.
1.03 Revenue Recognition
Advertisement revenue (Net of agency commission) is recognised on
accrual basis when respective advertisement or commercial appears on
the channel or as per the terms with advertising agencies.
In respect of Interest Income, it is recognised on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
1.04 Fixed Assets
Tangible fixed Assets are stated at cost of acquisition which includes
incidental expenses incurred for bringing the assets to the working
condition for their intended use.
1.05 Depreciation
Depreciation has been provided on straight line method on pro rata
basis at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956. Channel Development cost is amortized over a
period of ten years on time proportionate basis.
Depreciation on Building is provided on straight line method on Pro
rata basis considering useful life of 50 years and 5% residual value.
Depreciation on Media Assets has been provided @10% on Straight Line
Method. Depreciation on Decoders is provided @ 100%.
Software Purchase has been amortized @ 100%.
1.06 Foreign Currency Transaction
i. Initial Recognition
Foreign Currency transactions are recorded in the reporting currency by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the
transaction.
ii. Conversion
Foreign Currency monetary items are reported using exchange rate as on
31st March. Non-monetary items, which are carried in items of
historical cost denominated in a foreign currency are reported using
exchange rate at the date of the transaction.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting company's monetary items at rates different from those at
which they were initially recorded during the year, or reported in the
previous financial statement are recognized as income or expenses in
the year in which they arise.
1.07 Investments
Long term investments are stated at cost.
1.08 Employee Benefits
Post Employment Benefits Plan
Payments to defined contribution of retirement benefit schemes is
charged to profit & loss account when contributions to respective funds
are due. For Defined benefit schemes, such as leave encashment and
gratuity, it is provided on the basis of actuarial v. valuation taken
at the end of each year.
Other short-term employee benefits are charged to profit & loss
account on accrual basis.
1.09 Borrowing Cost
Borrowing costs directly attributable to development of qualifying
asset are capitalised till the date qualifying asset is ready for put
to use for its intended purpose as part of cost of that asset. Other
borrowing costs are recognised as expenses in the period in which they
are incurred.
1.10 Taxes On Income
Tax expense comprises both current and deferred taxes. Current tax
provision as per Income Tax Act, 1961, is made based on the tax
liability computed after considering tax allowances and exemptions at
the balance sheet date.
Deferred income taxes reflect the impact of current year timing
difference between taxable income and accounting income for the year
and reversal of timing difference of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that, there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred tax assets are recognized on carry forward of unabsorbed
depreciation and tax losses only if there is virtual certainty that
such deferred tax assets can be realized against future taxable
profits.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date and written down or written up, to reflect the amount that
is reasonably/virtually certain, as the case may be, to be realised.
1.11 Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
1.12 Provisions
A provision is recognised when the company has a present obligation as
a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Mar 31, 2011
1. Basis for preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention ignoring changes, if any, purchasing power of money and on
accounting principles of "going concern". All income and expenditure
havinga material bearing on the financial statements are recognised on
accrual basis.
2. Use of Estimates
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumption that
affect the reported amounts of assets and liabilities and disclosure
relating to contingent liability at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.
3. Revenue Recognition
Advertisement revenue (Net of agency commission) is recognised on
accrual basis when respective advertisement or commercial appears on
the channel or as per the terms with advertising agencies.
In respect of Interest Income, it is recognised on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
In case of Barter transaction the income is recognized at fair value of
Goods/Services received.
4. Fixed Assets
Tangible fixed Assets are stated at cost of acquisition which includes
incidental expenses incurred for bringing the assets to the working
condition for their intended use.
5. Depreciation
Depreciation has been provided on straight line method on pro rata
basis at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956. Channel Development cost is amortized over a
period often years on time proportionate basis.
Depreciation on Building is provided on straight line method on Pro
rata basis considering useful life of 50 years and 5% residual value.
Depreciation on Media Assets has been provided @10% on Straight Line
Method.
Depreciation on Decoders is provided @ 100%.
Software Purchase has been amortized @ 100%.
6. Foreign Currency Transaction
i. Initial Recognition
Foreign Currency transactions are recorded in the reporting currency by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the
transaction.
ii.Conversion
Foreign Currency monetary items are reported using exchange rate as on
31st March. Non-monetary items, which are carried in items of
historical cost denominated in a foreign currency are reported using
exchange rate at the date of the transaction.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting company's monetary items at rates different from those at
which they were initially recorded during the year, or reported in the
previous financial statement are recognized as income or expenses in
the year in which they arise.
7. Investments
Long term investments are stated at cost.
8. Employee Benefits
Post Employment Benefits Plan
Payments to defined contribution of retirement benefit schemes is
charged to profit & loss account when contributions to respective funds
are due.
For Defined benefit schemes, such as leave encashment and gratuity, it
is provided on the basis of actuarial valuation taken at the end of
each year.
Other short -term employee benefits are charged to profit & loss
account on accrual basis.
9. Borrowing Cost
Borrowing costs directly attributable to development of qualifying
asset are capitalised till the date qualifying asset is ready for put
to use for its intended purpose as part of cost of that asset. Other
borrowing costs are recognised as expenses in the period in which they
are incurred.
10. Taxes On Income
Tax expense comprises both current and deferred taxes. Current tax
provision as per Income tax Act, 1961, is made based on the tax
liability computed after considering tax allowances and exemptions at
the balance sheet date.
Deferred income taxes reflect the impact of current year timing
difference between taxable income and accounting income for the year
and reversal of timing difference of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that, there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred tax assets are recognized on carry forward of unabsorbed
depreciation and tax losses only if there is virtual certainty that
such deferred tax assets can be realized against future taxable
profits.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date and written down or written up, to reflect the amount that
is reasonably/virtually certain, as the case may be, to be realised.
(Refer note 8 to Notes to Accounts)
11. Earning Per Share (EPS)
Basic earnings per share are calculated by
dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the period.
12. Provisions
A provision is recognised when the company has a present obligation as
a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Mar 31, 2010
A. Basis for preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention ignoring changes, if any, purchasing power of money and on
accounting principles of "going concern". All income and expenditure
having a material bearing on the financial statements are recognised on
accrual basis.
b. Use of Estimates
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumption that
affect the reported amounts of assets and liabilities and disclosure
relating to contingent liability at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.
c. Revenue Recognition
Advertisement revenue (Net of agency commission) is recognised on
accrual basis when respective advertisement or commercial appears
on the channel or as per the terms with advertising agencies.
In respect of Interest Income, it is recognised on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
Facility charges for Channel Management and Distribution Service is
recognised as per the terms of agreement.
In case of Barter transaction the income is recognized at fair value
of Goods/Services received.
d. Fixed assets
Tangible fixed Assets are stated at cost of acquisition which includes
incidental expenses incurred for bringing the assets to the working
condition for their intended use.
e. Depreciation
Depreciation has been provided on straight line method on pro rata
basis at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956.
Channel Development cost is amortized over a period of ten years on
time proportionate basis. Depreciation on the Land and Building is
provided on straight line method on Pro rata basis considering
remaining useful life of 50 years and 5% residual value.
Depreciation on Media Assets has been provided @10% on Straight Line
Method.
Depreciation on Decoders is provided @ 100%. Software Purchase has
been amortized @ 100%.
f. Foreign Currency Transaction i. Initial Recognition
Foreign Currency transactions are recorded in the reporting currency by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the
transaction.
ii. Conversion
Foreign Currency monetary items are reported using exchange rate as on
31st March. NonÃmonetary items, which are carried in items of
historical cost denominated in a foreign currency are reported using
exchange rate at the date of the transaction.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting companyÃs monetary items at rates different from those at
which they were initially recorded during the year, or reported in the
previous financial statement ,are recognized as income or expenses in
the year in which they arise.
g. Investments
Long term investments are stated at cost. Investment in shares of a
company, the holding of which is directly related to the right to hold
the investment property and the legal title to it, is classified as
Land & Building and carried at its Investment value and other ancillary
cost attributable to it.
h. Employee Benefits
Post Employment Benefits Plan
Payments to defined contribution of retirement benefit schemes is
charged to profit & loss account when contributions to respective funds
are due.
For Defined benefit schemes, such as leave encashment and gratuity, it
is provided on the basis of actuarial valuation taken at the end of
each year.
Other short Ãterm employee benefits are charged to profit & loss
account on accrual basis.
i. Borrowing Cost
Borrowing costs directly attributable to development of qualifying
asset are capitalised till the date qualifying asset is ready for put
to use for
its intended purpose as part of cost of that asset. Other borrowing
costs are recognised as expenses in the period in which they are
incurred.
j. Taxes On Income
Tax expense comprises both current and deferred taxes. Current tax
provision as per Income tax Act, 1961, is made based on the tax
liability computed after considering tax allowances and exemptions at
the balance sheet date.
Deferred income taxes reflect the impact of current year timing
difference between taxable income and accounting income for the year
and reversal of timing difference of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that, there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred tax assets are recognized on carry forward of unabsorbed
depreciation and tax losses only if there is virtual certainty that
such deferred tax assets can be realized against future taxable profits
.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date and written down or written up, to reflect the amount that
is reasonably/virtually certain, as the case may be, to be realised.
(Refer note 10 to Notes to Accounts )
k. Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
l. Provisions
A provision is recognised when the company has a present obligation as
a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.