Notes to Accounts of G V Films Ltd.

Mar 31, 2018

1. GENERAL NOTES ON ACCOUNTS

1.1 Accounting Period

The period of accounts under review is from April 1, 2017 to March 31, 2018 for the Company.

1.2 Receivables & Payables

Trade creditors, Trade receivables, loans & advances are subject to review / reconciliation / confirmation. Adjustments, if any will be made on completion of such review / reconciliation / receipt of confirmations/identification of doubtful and bad debts/ advances

1.3 Consequent to the applicability of the Companies Act, 2013 depreciation for the year ended 31 March 2018 has been calculated based on the useful life as specified under Schedule II of the said Act.

1.4 The figures have been rounded off to the nearest rupee.

1.5 Previous year’s figures have been re-grouped wherever necessary.

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Mar 31, 2017

1. Accounting Period

The period of accounts under review is from April 1, 2015 to March 31, 2016 for GV Films Limited and its wholly owned subsidiary.

2. Receivables & Payables

Trade creditors, Trade receivables, loans & advances are subject to review / reconciliation / confirmation. Adjustments, if any will be made on completion of such review / reconciliation / receipt of confirmations/identification of doubtful and bad debts/ advances

3. Disclosure of Specified Bank Notes

During the year, the Company had Specified Bank Notes (SBNs) or other denomination notes as defined in the MCA notification, G.S.R. 308(E) , dated March 31, 2017. The details of SBNs held and transacted during the period from November, 2016 to December 2016, the denomination-wise SBNs and other notes as per the notification are as follows.

For this purposes of this clause, the term specified Bank Notes shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O.3407(E), dated November 8, 2016.

4. The figures have been rounded off to the nearest rupee.

5. Previous year''s figures have been re-grouped wherever necessary.

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Mar 31, 2015

1. Accounting Period

The period of accounts under review is from April 1, 2014 to March 31, 2015 for the company.

2. Receivables & Payables

Trade creditors, Trade receivables, loans & advances are subject to review / reconciliation / confirmation. Adjustments, if any will be made on completion of such review / reconciliation / receipt of confirmations/identification of doubtful and bad debts/ advances.

3. Consequent to the applicability of the Companies Act, 2013 with effect from 1st April 2014, depreciation for the year ended 31st March 2015 has been calculated based on the useful life as specified under Schedule II of the said Act.

4. The figures have been rounded off to the nearest rupee.

5. Previous year's figures have been re-grouped wherever necessary.

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Mar 31, 2014

1.1 Accounting Period

The period of accounts under review is from April 1, 2013 to March 31, 2014 for the company.

1.2 Receivables & Payables

Balance confirmation letters have been dispatched to various Sundry Debtors; confirmations are yet to be received.

1.3 Contingent Liability

Liability 2013-14 2012-13 Rs. Rs.

Capital Commitments NIL NIL

Claims against the company not acknowledged as debts 5,00,00,000 5,00,00,000

Statutory dues under dispute - Service Tax 53,52,586 53,52,586

1.4 The figures have been rounded off to the nearest rupee.

1.5 Previous year''s figures have been re-grouped wherever necessary.

2. SHARE CAPITAL

The company has one class of equity share having a fare value of Rs.10 per share. Each shareholder of equity shares is entitled to one vote per share.

3. No shareholder holds more than 5% of total paid-up share capital of the company.

4. TRADE PAYBLE

The company has no dues to suppliers under Micro, Small and Medium Enterprises Development Act 2006 as at 31st March, 2014

5. OTHER CURRENT LIABILITIES

5.1 Interest accrued and due is the provision from the Bond maturity due date till the end of reporting period at the rates already stipulated in the terms of bond issue after considering exchange loss for the current year.

6. DEFERRED TAX ASSET

In the absence of virtual certainty, current provision for deferred tax asset is not recognised.

7. INVENTORIES

7.1 Film rights are valued at the lower of cost or net realisable values. The net realisable values are market values estimated by the management on film by film basis, as at the end of the reporting period.

7.2 Work in Progress of films is stated at the accumulated costs.

8. CHANGES IN INVENTORIES

Since the effect of year end valuation of the inventory is substantial, the same is disclosed under Exceptional Items.

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Mar 31, 2013

1.1 accounting period

The period of accounts under review is from April 1, 2012 to March 31, 2013 for the company.

1.2 receivables & payables

Balance confirmation letters have been dispatched to various Sundry Debtors; confirmations are yet to be received.

1.3 Contingent Liability

2012-13 2011-12 Liability rs. Rs.

Capital Commitments niL NIL

Claims against the company not acknowledged as debts 5 00 00 000 5 00 00 000 Statutory dues under dispute

- Service Tax 53 52 586 53 52 586

1.4 The figures have been rounded off to the nearest rupee.

1.5 Previous year''s figures have been re-grouped wherever necessary.

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Mar 31, 2012

The company has one class of equity share having a fare value of Rs,10 per share. Each shareholder of equity shares is entitled to one vote per share.

1.1 No shareholder holds more than 5% of total paid-up share capital of the company.

2.1 Term Loan of Rs.3.00 Crores was obtained from State Bank of India on 20.02.10 on the terms of repayment of Principal of Rs.37.50 Lakhs payable quarterly with monthly interest @ 14.25% on loan outstanding with penal interest @ 2% if delay exceeds 60 days - against security by way of hypothecation of Gudiyatham theatre.

The company has no dues to suppliers under Micro, Small and Medium Enterprises Development Act 2006 as at 31st March, 2012.

3.1 Other creditors payable includes dues to holder of FCCB of Rs. 18,22,45,882/- which is subject to dispute.

3.2 Interest is Rs. 1,01,35,256/'' provided after the due date till the end of reporting period at the rates already stipulated in the terms of bond issue.

3.3 Capital advance of Rs.3,89,00,000/- is the advance received for sale of Gudiyatham threatre. Total consideration for the sale is Rs.7,25,00,000/-

4.1 Film rights are valued at the lower of cost or net realisable values. The net realisable values are market values estimated by the management on film by film basis* as at the end of the reporting period.

4.2 Work in Progress of films is stated at the accumulated costs.

5.1 Accounting Period

The period of accounts under review is from April 1,2011 to March 31,2012 for GV Films Limited.

5.2 Receivables & Payables

Balance confirmation letters have been dispatched to various Sundry Debtors; confirmations are yet to be received.

5.3 Contingent Liability

Liability 31-03-2012 31-03-2011 Rs Rs

Capital Commitments NIL NIL

Claims against the company not 5 00 00 000 5 00 00 000 acknowledged as debts

Statutory dues under dispute

- Service Tax 53 52 586 NIL

5.4 The figures have been rounded off to the nearest rupee.

5.5 Previous year''s figures have been re-grouped wherever necessary.

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Mar 31, 2011

1. Accounting Period

The period of accounts under review is from April 1,2010 to March 31,2011 for both GV Films Limited. & its wholly owned subsidiary GV Studio City Limited.

2. Acquisition of Subsidiary

The company has been alloted 1 50 00 000 shares of Rs.10/- each of GV Studio City Limited, a wholly owned subsidiary, in consideration for the transfer of theatre at Tanjore. This transfer of property from holding company to 100% subsidiary does not attract capital gain tax under the Income TaxAct.

3. Miscellaneous Income

Gains arising out of sale of Tanjore theatre (Shanthi-Kamala) is recognized under miscellaneous income.

4. Additions to Fixed Assets

- Tanjore theatre and all movable assets therein costing Rs 11,68,79,575/- including Rs. 13,81,665/- added this year, was transferred to subsidiary company for a consideration of Rs15,00,00,000/-.

In the opinion of the management, the web portal and capital work in progress are capable of yielding revenue upon completion.

5. Receivables & Payables

Balance confirmation letters have been dispatched to various Sundry Debtors, confirmations are yet to be received.

In the opinion of the management the loans and advances and receivable are realizable for their stated values.

6. Taxation

For the Financial Year 2010-11 income tax provision has not arisen due to losses.

In the absence of virtual certainty of earning profits in future years the Company has not recognised the Deferred Tax Assets for the present year.

7. Contingent Liability

Liability 31-03-2011 31-03-2010 Rs Rs

Capital Commitments NIL NIL

Claims against the company not 5,00,00,000 5,00,00,000 acknowledged as debts

Total 5.00.00.000 5.00.00.000

The effective capital of the company is above Rs 100 Crores.

The permissible Managerial remuneration is Rs. 24,00,000/- or Rs. 2,00,000/- per month.

Managerial Remuneration charged is Rs.Nil

8 Rounding off

Figures have been rounded off to the nearest rupee.

9 Regrouping

Previous year''s figures have been re-grouped wherever necessary.

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Mar 31, 2010

1. Accounting Period

- The period of accounts under review is from April 1,2009 to March 31,2010 for GV Films Limited.

2. Acquisition of Subsidiary

- The company has acquired 100% shares in GV Studio City Ltd for a consideration of Rs. 5,00,000/- by purchase of 50,000 equity shares of the company at Rs. 10/-each.

3. Increase in Paid up Capital

- During the year 9 Million Zero Coupon Unsecured Convertible Foreign Currency Bonds, 34% paid up, were converted, under the terms of the issue, into 1,64,92,833 shares of Rs. 10/- each at a premium of Re. 0.80 per share.

4. Additions to Fixed Assets

- A sum of Rs. 6,03,10,589/- was spent on the renovation and modification of the Tanjore theatre into a Multiplex. This includes a sum of Rs. 4,59,09,453/- transferred from Capital Work-in Progress.

5. Receivables & Payables

- Balance confirmation letters have been dispatched to various Sundry Debtors, Sundry Creditors and such others. Confirmations have been received from some parties and reconciliation work is in progress in respect of those confirmations.

6. Taxation

In view of losses sustained during the year, tax provision is not required to be made.

7. Contingent Liability

Liability 31-03-2010 31-03-2009 Rs Rs

Capital Commitments NIL 7,75,00,000

Claims against the 5,00,00,000 5,00,00,000 company not acknowledged as debts

Corporate Guarantee 83,50,000 NIL

8. Business Segments

9. Share Premium Account

Balance as on 01.04.2009 Rs. 84,81,94,434

- Premium on conversion of FCCB Bonds Rs. 1,31,94,266

Balance as at 31.03.2010 Rs. 86,13,88,700

10. Managerial Remuneration

In the absence of profits, Managerial remuneration is computed with reference to schedule*XIII of the Companies Act.

The effective capital of the company is above Rs 100 Crores. The permissible Managerial remuneration is Rs. 24,00,000/- or Rs. 2,00,000/- per month.

Managerial Remuneration charged is Rs. 8,75,400/-

11. Related Party Transactions

12. Rounding off

Figures have been rounded off to the nearest rupee.

13. Regrouping

Previous years figures have been re-grouped wherever necessary.