Mar 31, 2018
1. SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of Accounting:
The Financial Statements are prepared under the historical cost convention, on accrual basis of accounting and in accordance with Generally Accepted Accounting Principles (GAAP) in India and in compliance with the provisions of the Companies Act, 2013 and the Indian Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006 prescribed by the Central Government. The preparation of Financial Statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of income and expenses for the period, balance of Assets and Liabilities and disclosures relating contingent liabilities as of the date of the financial statements. Examples of such estimates include useful life of tangible fixed assets, income taxes and future obligations under the employee retirement benefit plans etc. Actual results could differ from those estimates and differences, if any, are recognized in the period in which results are known.
1.2 Preferential Allotment of Shares
Company has allotted 54,60,00,000 (Fifty four crores sixty lacs) equity shares price of Re. 1/- (Rupee one) per share of the company at par, distinctively numbered from 36,86,27834to 91,46,27,833 (both inclusive), to Directors Mr. Balakumar Vethagiri Giri, Mr. Ishari K Ganesh and Mr. Mahadevan Ganesh by conversion of Loans into Equity. The Preferential Allotment had been approved by the Board of Directors and the shareholders at its 28th Annual General meeting held on June 23, 2017 and in terms of Section 42, 62 ( c ) and other provisions of the Companies Act, 2013.
1.2 Income recognition
Revenues from film sale and distribution are recognized in the year of execution of agreements for sale. Revenues from exhibition of films are recognized upon realization.
Revenue from Operations:
During the year sale of films and distribution is NIL
1.3 Exceptional Items
An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the company is treated as an exceptional item and the same is disclosed in the notes to accounts.
Exceptional items arose on account of diminution in the value of inventory comprising diminution in value of films under production falling within WIP category, as well as certain overseas domestic film rights which are decade old and also expenses relating to previous years.
1.4 Fixed assets accounting
Fixed Assets are stated at cost of acquisition less accumulated depreciation.
Cost includes all expenses incurred to bring the Asset to its present location and condition.
Capital work-in-progress includes cost of fixed assets that are not ready for their intended use. Depreciation has been provided on the assets which are put to use on straight line value Method at the rates specified in Schedule II of the Companies Act, 2013.
1.5 Employee Benefits
Liability for employee benefits, long term, for present and past services which are due as per the terms of employment and as required by law are recorded in accordance with Indian Accounting Standard (Ind AS 19) âEmployee Benefitsâ issued by the Institute of Chartered Accountants of India.
Company has not determined the gratuity liability and leave encashment in accordance with Indian Accounting Standard (Ind AS 19) âEmployee Benefitsâ issued by the Institute of Chartered Accountants of India.
1.6 Inventory valuation
Inventories represent films under production and other film rights. Films under production are valued at cost.
The film rights are valued, as at the year end, as per the current market potential of the pictures.
The domestic and overseas right of Tamil films amounts has also suffered diminution in value to the extent of 100%. It is not possible to ascertain and say that the value loss according to any particular date. However the management regularly the values closing stock for each year as at the year end and therefore the diminution in the value duly recognized in the books of accounts as on 31.03.2018 is appropriate.
1.7 Foreign Currency transactions
Transactions denominated In Foreign Currency are recorded at exchange rates prevailing at the time of such transactions.
Exchange differences arising upon Exchange Realization is taken to the Exchange realization account and the overall profit made or loss sustained at the year end is taken to the debit or credit of Profit and Loss account as the case may be.
1.8 Lease
Operating lease payments are recognized as expenses in the profit and loss account as per the terms of the agreements which are representative of the time pattern of the usersâ benefit.
1.9 Subsidiary
The company is 100% holding company of GV Studio City Limited. The financial statements of the holding and subsidiary company as well as the consolidated financial statements are presented.
1.10 Deferred tax
Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of assets.
Since there is no reasonable certainty of earning profits in future years the entity has not recognised the deferred tax Assets for the present year.
1.11 Valuation of Investments
Quoted shares are, as a prudent measure is valued, at the lower of the cost or Market value. Un-quoted equity shares, held as long term investments, are valued at cost.
The Company has performed an assessment for impairment of its investment in subsidiaries and decline in the value of investments held by these subsidiaries, based on which company has written-off the non-current investments.
The Company has determined recoverable values of its investments as fair value, less cost of disposal. Company has used the ââcost approachââ valuation technique for determining fair value of its investment in subsidiaries.
1.12 Taxes on Income
Current tax is the amount of tax payable on the taxable income for the year and determined in accordance with provisions of the Income Tax Act, 1961. For the year 2017-18 income tax provision has not arisen due to losses.
1.13 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 an outflow of resources.
Mar 31, 2017
1.1 Basis of Accounting:
The Financial Statements are prepared under the historical cost convention, on accrual basis of accounting and in accordance with Generally Accepted Accounting Principles (GAAP) in India and in compliance with the provisions of the Companies Act, 2013 and the Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006 prescribed by the Central Government.
The preparation of Financial Statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of income and expenses for the period, balance of Assets and Liabilities and disclosures relating contingent liabilities as of the date of the financial statements. Examples of such estimates include useful life of tangible fixed assets, income taxes and future obligations under the employee retirement benefit plans etc. Actual results could differ from those estimates and differences, if any, are recognized in the period in which results are known.
1.2 Income recognition
Revenues from film sale and distribution are recognized in the year of execution of agreements for sale.
Revenues from exhibition of films are recognized upon realization.
1.3 Fixed assets accounting
Fixed Assets are stated at cost of acquisition less accumulated depreciation.
Cost includes all expenses incurred to bring the Asset to its present location and condition.
Capital work-in-progress includes cost of fixed assets that are not ready for their intended use. Depreciation has been provided on the assets which are put to use on straight line value Method at the rates specified in Schedule II of the Companies Act, 2013.
1.4 Employee Benefits
Liability for employee benefits, long term, for present and past services which are due as per the terms of employment and as required by law are recorded in accordance with Accounting Standard (AS) 15 "Employee Benefits" issued by the Institute of Chartered Accountants of India.
1.5 Gratuity
Gratuity is a defined benefit plan, provided in respect of past services based on independent actuarial valuation and corresponding contribution to the fund is expensed in the year of such contribution.
1.6 Provident Fund
Provident fund is a contribution to a Recognized Provident Fund with the Provident Fund Commissioner and the contribution made during the year as per the plan is expensed.
1.7 Leave Encashment
Liability for leave is treated as a short-term liability and is accounted for as and when earned by the employee.
1.8 Inventory valuation
Inventories represent films under production and other film rights. Films under production are valued at cost.
The film rights are valued, as at the year end, as per the current market potential of the pictures.
1.9 Foreign Currency transactions
Transactions denominated In Foreign Currency are recorded at exchange rates prevailing at the time of such transactions.
Exchange differences arising upon Exchange Realization is taken to the Exchange realization account and the overall profit made or loss sustained at the year end is taken to the debit or credit of Profit and Loss account as the case may be.
1.10 Lease
Operating lease payments are recognized as expenses in the profit and loss account as per the terms of the agreements which are representative of the time pattern of the users'' benefit.
1.11 Subsidiary
The company is 100% holding company of G.V.Studio City Limited. The financial statements of the holding and subsidiary company as well as the consolidated financial statements are presented.
1.12 Deferred tax
Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of assets.
Since there is no reasonable certainty of earning profits in future years the entity has not recognized the deferred tax Assets for the present year.
1.13 Valuation of Investments
Quoted shares are, as a prudent measure is valued, at the lower of the cost or Market value.
Un-quoted equity shares, held as long term investments, are valued at cost.
1.14 Taxes on Income
Current tax is the amount of tax payable on the taxable income for the year and determined in accordance with provisions of the Income Tax Act, 1961. For the year 2016-17 income tax provision has not arisen due to losses.
1.15 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 an outflow of resources.
Mar 31, 2015
1.1 Basis of Accounting:
The Financial Statements are prepared under the historical cost
convention, on accrual basis of accounting and in accordance with
Generally Accepted Accounting Principles (GAAP) in India and in
compliance with the provisions of the Companies Act, 2013 and the
Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 prescribed by the Central Government.
The preparation of Financial Statements in conformity with Indian GAAP
requires management to make estimates and assumptions that affect the
reported amounts of income and expenses for the period, balance of
Assets and Liabilities and disclosures relating contingent liabilities
as of the date of the financial statements. Examples of such estimates
include useful life of tangible fixed assets, income taxes and future
obligations under the employee retirement benefit plans etc. Actual
results could differ from those estimates and differences, if any, are
recognized in the period in which results are known.
1.2 Income recognition
Revenues from film sale and distribution are recognized in the year of
execution of agreements for sale. Revenues from exhibition of films
are recognized upon realization.
1.3 Fixed assets accounting
Fixed Assets are stated at cost of acquisition less accumulated
depreciation.
Cost includes all expenses incurred to bring the Asset to its present
location and condition.
Depreciation has been provided on the assets which are put to use on
straight line value Method at the rates specified in Schedule II of the
Companies Act, 2013.
1.4 Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of employment and as
required by law are recorded in accordance with Accounting Standard
(AS) 15 "Employee Benefits" issued by the Institute of Chartered
Accountants of India.
1.5 Gratuity
Gratuity is a defined benefit plan, provided in respect of past
services based on independent actuarial valuation and corresponding
contribution to the fund is expensed in the year of such contribution.
1.6 Provident Fund
Provident fund is a contribution to a Recognized Provident Fund with
the Provident Fund Commissioner and the contribution made during the
year as per the plan is expensed.
1.7 Leave Encashment
Liability for leave is treated as a short-term liability and is
accounted for as and when earned by the employee.
1.8 Inventory valuation
Inventories represent films under production and other film rights.
Films under production are valued at cost.
The film rights are valued, as at the year end, as per the current
market potential of the pictures.
1.9 Foreign Currency transactions
Transactions denominated In Foreign Currency are recorded at exchange
rates prevailing at the time of such transactions.
Exchange differences arising upon Exchange Realization is taken to the
Exchange realization account and the overall profit made or loss
sustained at the year end is taken to the debit or credit of Profit and
Loss account as the case may be.
1.10 Lease
Operating lease payments are recognized as expenses in the profit and
loss account as per the terms of the agreements which are
representative of the time pattern of the users' benefit.
1.11 Subsidiary
The company is 100% holding company of G.V. Studio City Limited. The
financial statements of the holding and subsidiary company as well as
the consolidated financial statements are presented.
1.12 Deferred tax
Deferred tax represents the effect of timing difference between taxable
income and accounting income for the reporting period that originate in
one period and are capable of reversal in one or more subsequent
periods.
Deferred tax assets are recognized and carried forward only to the
extent that there is a reasonable certainty that the assets will be
realized in future. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognized only if there is virtual certainty of realization of assets.
Since there is no reasonable certainty of earning profits in future
years the entity has not recognized the deferred tax Assets for the
present year.
1.13 Valuation of Investments
Quoted shares are, as a prudent measure is valued, at the lower of the
cost or Market value. Un-quoted equity shares, held as short term
investments, are valued at cost.
1.14 Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year and determined in accordance with provisions of the Income Tax
Act, 1961. For the year 2014-15 income tax provision has not arisen due
to losses.
1.15 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 an outflow of resources.
Mar 31, 2014
1.1 Basis of Accounting:
The Financial Statements are prepared under the historical cost
convention, on accrual basis of accounting and in accordance with
Generally Accepted Accounting Principles (GAAP) in India and in
compliance with the provisions of the Companies Act, 1956 and the
Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 prescribed by the Central Government.
The preparation of Financial Statements in conformity with Indian GAAP
requires management to make estimates and assumptions that affect the
reported amounts of income and expenses for the period, balance of
Assets and Liabilities and disclosures relating contingent liabilities
as of the date of the financial statements. Examples of such estimates
include useful life of tangible fixed assets, income taxes and future
obligations under the employee retirement benefit plans etc. Actual
results could differ from those estimates and differences, if any, are
recognized in the period in which results are known.
1.2 Income recognition
Revenues from film sale and distribution are recognized in the year of
execution of agreements for sale.
Revenues from exhibition of films are recognized upon realization.
1.3 Fixed assets accounting
Fixed Assets are stated at cost of acquisition less accumulated
depreciation.
Cost includes all expenses incurred to bring the Asset to its present
location and condition.
Depreciation has been provided on the assets which are put to use on
written down value Method at the rates specified in Schedule XIV of the
Companies Act, 1956.
1.4 Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of employment and as
required by law are recorded in accordance with Accounting Standard
(AS) 15 "Employee Benefits" issued by the Institute of Chartered
Accountants of India.
1.5 Gratuity
Gratuity is a defined benefit plan, provided in respect of past
services based on independent actuarial valuation and corresponding
contribution to the fund is expensed in the year of such contribution.
1.6 Provident Fund
Provident fund is a contribution to a Recognised Provident Fund with
the Provident Fund Commissioner and the contribution made during the
year as per the plan is expensed.
1.7 Leave Encashment
Liability for leave is treated as a short-term liability and is
accounted for as and when earned by the employee.
1.8 Inventory valuation
Inventories represent films under production and other film rights.
Films under production are valued at cost.
The film rights are valued, as at the year end, as per the current
market potential of the pictures.
1.9 Foreign Currency transactions
Transactions denominated In Foreign Currency are recorded at exchange
rates prevailing at the time of such transactions. Exchange
differences arising upon Exchange Realization is taken to the Exchange
realization account and the overall profit made or loss sustained at
the year end is taken to the debit or credit of Profit and Loss account
as the case may be.
1.10 Lease
Operating lease payments are recognized as expenses in the profit and
loss account as per the terms of the agreements which are
representative of the time pattern of the users'' benefit.
1.11 Subsidiary
The company is 100% holding company of GV Studio City Limited. The
financial statements of the holding and subsidiary company as well as
the consolidated financial statements are presented.
1.12 Deferred tax
Deferred tax represents the effect of timing difference between taxable
income and accounting income for the reporting period that originate in
one period and are capable of reversal in one or more subsequent
periods.
Deferred tax assets are recognized and carried forward only to the
extent that there is a reasonable certainty that the assets will be
realized in future. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognized only if there is virtual certainty of realization of assets.
Since there is no reasonable certainty of earning profits in future
years the entity has not recognised the deferred tax Assets for the
present year.
1.13 Valuation of Investments
Quoted shares are, as a prudent measure is valued, at the lower of the
cost or Market value.
Un-quoted equity shares, held as short term investments, are valued at
cost.
1.14 Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year and determined in accordance with provisions of the Income Tax
Act, 1961. For the year 2013-14 income tax provision has not arisen due
to losses.
1.15 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 an outflow of resources.
Mar 31, 2012
1.1 Basis of Accounting:
The Financial Statements are prepared under the historical cost
convention, on accrual basis of accounting and in accordance with
Generally Accepted Accounting Principles (GAAP) in India and in
compliance with the provisions of the Companies Act, 1956 and the
Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 prescribed by the Central Government.
The preparation of Financial Statements in conformity with Indian GAAP
requires management to make estimates and assumptions that affect the
reported amounts of income and expenses for the period, balance of
Assets and Liabilities and disclosures relating contingent liabilities
as of the date of the financial statements. Examples of such estimates
include useful life of tangible fixed assets, income taxes and future
obligations under the employee retirement benefit plans etc. Actual
results could differ from those estimates and differences, if any, are
recognized in the period in which results are known.
1.2 Income recognition
Revenues from film sale and distribution are recognized in the year of
execution of agreements for sale.
Revenues from exhibition of films are recognized upon realization.
1.3 Fixed assets accounting
Fixed Assets are stated at cost of acquisition less accumulated
depreciation.
Cost includes all expenses incurred to bring the Asset to its present
location and condition.
Web casting portal represents the cost of expenses incurred by the
company in acquiring and developing web casting technology, web NTV
launch expenses, acquired value of internet rights of Hollywood films /
regional films and related overheads.
Depreciation has been provided on the assets which are put to use on
written down value Method at the rates specified in Schedule XIV of the
Companies Act, 1956.
1.4 Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of employment and as
required by law are recorded in accordance with Accounting Standard
(AS) 15 "Employee Benefits" issued by the Institute of Chartered
Accountants of India.
1.5 Gratuity
Gratuity is a defined benefit plan, provided in respect of past
services based on independent actuarial valuation and corresponding
contribution to the fund is expensed in the year of such contribution.
1.6 Provident Fund
Provident fund is a contribution to a Recognised Provident Fund with
the Provident Fund Commissioner and the contribution made during the
year as per the plan is expensed.
1.7 Leave Encashment
Liability for leave is treated as a short-term liability and is
accounted for as and when earned by the employee.
1.8 Inventory valuation
Inventories represent films underproduction and otherfilm rights.
Films under production are valued at cost.
The film rights are valued, as at the year end, as per the current
market potential of the pictures.
1.9 Foreign Currency transactions
Transactions denominated In Foreign Currency are recorded at exchange
rates prevailing at the time of such transactions.
Exchange differences arising upon Exchange Realization is taken to the
Exchange realization account and the overall profit made or loss
sustained at the year end is taken to the debit or credit of Profit and
Loss account as the case may be.
1.10 Lease
Operating lease payments are recognized as expenses in the profit and
loss account as per the terms of the agreements which are
representative of the time pattern of the users'' benefit.
1.11 Subsidiary
The company is 100% holding company of G.V.Studio City Limited. The
financial statements of the holding and subsidiary company as well as
the consolidated financial statements are presented.
1.12 Deferred tax
Deferred tax represents the effect of timing difference between taxable
income and accounting income for the reporting period that originate in
one period and are capable of reversal in one or more subsequent
periods.
Deferred tax assets are recognized and carried forward only to the
extent that there is a reasonable certainty that the assets will be
realized in future. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognized only if there is virtual certainity of realization of
assets.
Since there is no reasonable certainity of earning profits in future
years the entity has not recognised the deferred tax Assets for the
present year.
1.13 Valuation of Investments
Quoted shares are, as a prudent measure is valued, at the lower of the
cost or Market value. Un-quoted equity shares, held as short term
investments, are valued at cost.
1.14 Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year and determined in accordance with provisions of the Income Tax
Act, 1961. For the year 2011-12 income tax provision has not arisen due
to losses.
1.15 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 an outflow of resources.
Mar 31, 2011
A) Basis of Accounting:
- The Financial Statements are prepared under the historical cost
convention, on accrual basis of accounting and in accordance with
Generally Accepted Accounting Principles (GAAP) in India and in
compliance with the provisions of the Companies Act, 1956 and the
Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 prescribed by the Central Government.
- The preparation of Financial Statements in conformity with Indian
GAAP requires management to make estimates and assumptions that affect
the reported amounts of income and expenses for the period, balance of
Assets and Liabilities and disclosures relating contingent liabilities
as of the date of the financial statements. Examples of such estimates
include useful life of tangible fixed assets, income taxes and future
obligations under the employee retirement benefit plans etc. Actual
results could differ from those estimates and differences, if any, are
recognized in the period in which results are known.
b) Income recognition
Revenues from film sale and distribution are recognized in the year of
execution of agreements for sale. Revenues from exhibition of films
are recognized upon realization.
- Accrued interest on overdue deposits and inoperative accounts is
recognized only upon realization.
c) Fixed assets accounting:
- Fixed Assets are stated at cost of acquisition less accumulated
depreciation.
- Cost includes all expenses incurred to bring the Asset to its present
location and condition.
- Web casting portal represents the cost of expenses incurred by the
company in acquiring and developing web casting technology, web NTV
launch expenses, acquired value of internet rights of Hollywood films /
regional films and related overheads.
Capital work in progress comprises advances for investments and
recognized at cost.
Depreciation has been provided on the assets which are put to use on
written down value Method at the rates specified in Schedule XIV of the
Companies Act, 1956.
d) Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of employment and as
required by law are recorded in accordance with Accounting Standard
(AS) 15 "Employee Benefits" issued by the Institute of Chartered
Accountants of India.
Gratuity
- Gratuity is a defined benefit plan, provided in respect of past
services based on independent actuarial valuation and corresponding
contribution to the fund is expensed in the year of such contribution.
Provident Fund
- Provident fund is a contribution to a Recognised Provident Fund with
the Provident Fund Commissioner and the contribution made during the
year as per the plan is expensed.
Leave Encashment
Liability for leave is treated as a short-term liability and is
accounted for as and when earned by the employee.
e) Inventory valuation:
Inventories represent films underproduction and otherfilm rights.
Films under production are valued at cost.
- The film rights are valued, as at the year end, as perthe current
market potential of the pictures.
f) Foreign Currency transactions
- Transactions denominated In Foreign Currency are recorded at exchange
rates prevailing at the time of such transactions.
Exchange differences arising upon Exchange Realization is taken to the
Exchange realization account and the overall profit made or loss
sustained at the year end is taken to the debit or credit of Profit and
Loss account as the case may be.
g) Lease
Operating lease payments are recognized as expenses in the profit and
loss account as per the terms of the agreements which are
representative of the time pattern of the users'' benefit.
h) Consolidated Financial Statements
The company has acquired 100% shares in GV Studio City Ltd in FY
2009-10. The financial statements of the holding and subsidiary company
as well as the consolidated financial statements are presented.
i) Deferred tax
Deferred tax represents the effect of timing difference between taxable
income and accounting income for the reporting period that originate in
one period and are capable of reversal in one or more subsequent
periods.
Deferred tax assets are recognized and carried forward only to the
extent that there is a reasonable certainty that the assets will be
realized in future. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognized only if there is virtual certainty of realization of assets.
j) Valuation of Investments
Quoted shares are, as a prudent measure are valued, at the lower of the
cost or Market value.
Un-quoted equity shares, held as short term investments, are valued at
cost,
k) Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year and determined in accordance with provisions of the Income TaxAct,
1961.
I) 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 an outflow of resources.
m) Interest Expenditure
Interest expenditure is recognized for bank loans and Foreign Currency
Convertible Bonds (FCCBs) on accrual basis. Interest is not recognized
on related party loans.
n) Forex Gain/Loss
The gain/loss arising out of exchange value of foreign currency
balances are recognized as difference between the exchange value at the
beginning and at the end of the year.
Mar 31, 2010
A) Basis of Accounting:
- The Financial Statements are prepared under the historical cost
convention, on accrual basis of accounting and in accordance with
Generally Accepted Accounting Principles (GAAP) in India anc in
compliance with the provisions of the Companies Act, 1956 and the
Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 prescribed by the Central Government.
- The preparation of Financial Statements in conformity with Indian
GAAP requires management to make estimates and assumptions that affect
the reported amounts of income and expenses for the period, balance of
Assets and Liabilities and disclosures relating contingent liabilities
as of the date of the financial statements. Examples of such estimates
include useful life of tangible fixed assets, income taxes and future
obligations under the employee retirement benefit plans etc. Actual
results could differ from those estimates and differences, if any, are
recognized in the period in which results are known.
b) Income recognition:
- Revenues from film sale and distribution are recognized in the year
of execution of agreements for sale.
- Revenues from exhibition of films are recognized upon realization.
c) Fixed assets accounting:
- Fixed Assets are stated at cost of acquisition less accumulated
depreciation.
- Cost includes all expenses incurred to bring the Asset to its
present location and condition.
- Web casting portal represents the cost of expenses incurred by the
company in acquiring and developing web casting technology, web NTV
launch expenses, acquired value of internet rights of Hollywood films/
regional films and related overheads.
- Depreciation has been provided on the assets which are put to use on
written down value Method at the rates specified in Schedule XIV of the
Companies Act, 1956.
d) Employee Benefits:
- Liability for employee benefits, both short and long term, for
present and past services which are due as per the terms of employment
and as required by law are recorded in accordance with Accounting
Standard (AS) 15 "Employee Benefits" issued by the Institute of
Chartered Accountants of India.
Gratuity
- Gratuity is a defined benefit plan, provided in respect of past
services based on independent actuarial vali "ation and corresponding
contribution to the fund is expensed in the year of such contribution.
Provident Fund
- Provident fund is a contribution to a Recognised Provident Fund with
the Provident Fund Commissioner and the contribution made during the
year as per the plan is expensed.
Leave Encashment
- Liability for leave is treated as a short-term liability and is
accounted for as and when earned by the employee.
e) Inventory valuation:
- Inventories represent films under production and other film rights.
- Films under production are valued at cost.
- The film rights are valued, as at the year end, as per the current
market potential of the pictures.
f) Foreign Currency transactions:
- Transactions denominated In Foreign Currency are recorded at
exchange rates prevailing at the time of such transactions.
- Exchange differences arising upon Exchange Realization is taken to
the Exchange realization account and the overall profit made or loss
sustained at the year end is taken to the debit or credit of Profit and
Loss account as the case may be.
g) Lease:
- Operating lease payments are recognized as expenses in the profit
and loss account as per the terms of the agreements which are
representative of the time pattern of the users benefit.
h) Consolidated Financial Statements:
- The company has acquired 100% shares in GV Studio City Ltd as on
January 10, 2010. The financial statements of the holding and
subsidiary company as well as the consolidated financial statements are
presented.
i) Deferred tax:
- Deferred tax represents the effect of timing difference between
taxable income and accounting income for the reporting period that
originate in one period and are capable of reversal in one or more
subsequent periods.
- Deferred tax assets is recognized and carried forward only to the
extent that ther^ is a reasonable certainty that the assets will be
realized in future. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognized only if there is virtual certainity of realization of
assets.
j) Valuation of Investments:
- Quoted shares are, as a prudent measure are valued, at the lower of
the cost or Market value. ?æ Un-quoted equity shares, held as short
term investments, are valued at cost.
k) Taxes on Income:
- Current tax is the amount of tax payable on the taxable income for
the year and determined in accordance with provisions of the Income Tax
Act, 1961. For the year 2009-10 income tax not been provision has not
arisen due to losses.
l) 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 an outflow of resources.