Jun 30, 2012
1: Disclosure of Accounting Policies: The financial statements have
been prepared to comply in all material respects with the Mandatory
Accounting Standards issued by the Institute of Chartered Accountants
of India (ICAI) and the relevant provisions of Companies Act, 1956.
These financial statements have been prepared under the historical cost
convention on the accrual basis. The presentation of financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes.
Although these estimates are based on the management''s best knowledge
of current events and actions the company may undertake in future,
actual results ultimately differ from estimates.
2: Valuation of Inventories: Inventory of rights is valued at cost.
3: Cash flow Statement: Cash flow statement prepared under the direct
method forms part of the financial statements.
4: Contingencies and events occurring after the Balance Sheet date: NIL
5: Net Profit or Loss for the period, prior period items and changes in
accounting policies:
(a) Net profit for the period: All items of income and expenses in the
period are included in the determination of net profit for the period,
unless specifically mentioned elsewhere in the financial statements or
is required by an Accounting Standard.
(b) Prior period items-Nil.
(c) Changes in accounting policies: There are no significant changes in
accounting policies of the companyfromthatofthe previous period.
6: Depreciation Accounting: Fixed assets are depreciated underwritten
down Value Method (WDV) in the manner prescribed under Schedule XIV to
the Companies Act, 1956. For the assets acquired during the year, the
depreciation has been charged on pro-rata basis. Individual Assets
costing less than Rs. 5,000, are written off in the period of
acquisition.
7: Accounting for Construction Contracts: The above Standard is not
applicable to the Company, as it is not engaged in the business of
construction.
8: Accounting for Research and Development: This standard has been
withdrawn with effect from 1 -4-2003 consequent to the introduction of
Accounting Standard AS-26 on Accounting for Intangible Assets.
9: Revenue Recognition:
1. Revenue from theatrical exhibition is accounted on sale of tickets.
2. Revenue from distribution is recognised based on the agreements
entered into. Minimum guarantee is charged off in the year in which
agreement is entered into irrespective of the spill over of period over
which revenue accrues to the enterprise.
3. Revenue from rights are recognised in the period in which
agreements are entered into.
4. Revenue from production is recognised based on the nature of
agreements - While Minimum Guarantee is recognised on release, For
Advance based agreements revenue is recognised over the period in which
it accrues to the enterprise.
10: Accounting for Fixed Assets: Fixed assets are capitalised at
acquisition cost, which comprises of freight, installation cost,
duties, taxes, and other directly attributable cost of bringing the
assets to its working condition for the intended use.
11: Accounting for effects in foreign exchange rates:
a) Conversion - All monetary items denominated in foreign currency are
reflected at the rates prevailing on the Balance sheet date.
b) Initial Recognition - Income and Expenditure items involving foreign
exchange are translated at the exchange rate prevailing on the dates of
transaction.
c) Exchange Differences - Exchange differences, if any, arising on
account of fluctuations in foreign exchange have been duly reflected in
the Profit & Loss Account.
d) Subsidiary: During the year the operations of subsidiary has become
integral to the business of holding company and accordingly the
monetary items are stated at closing rates and revenue items are
converted at average rates. The fluctuation reserve recognised earlier
is carried forward at historic cost as per the Standard.
12: Accounting for Government Grants: The Company has not received any
grants.
13: Accounting for Investments: All Long term Investments are carried
at cost. Investment in subsidiary is stated at cost.
14. Accounting for Amalgamation: This standard is not applicable for
the current reporting period.
15: Accounting for Retirement benefits:
a) Gratuity: The company has gratuity payable ofRs. 1,141,379/- as on the
balance sheet date which was recognised earlier. The liability of the
present employees as per actuarial valuation is less than the aforesaid
amount. However, no reversal is made as the details of claim /
settlement of resigned employees is not available.
b) No other short term or long term benefit has accrued to the
employees.
16: Borrowing Cost: Finance charges in respect of production of film is
capitalised as part of inventory cost till the time it is ready for
release. Interest so capitalized during the period is Rs. 2.82 Crores.
17: Segment Reporting: This standard is not applicable to the company
as there are no identifiable segments.
Jun 30, 2011
A. Basis of Preparation of financial statements .
The accompanying financial statements have been prepared under the
historical cost convention and are in compliance with the applicable
accounting standards issued by the institute of Chartered Accountants
of India (ICAI) as referred to in section 211 (3c) of the companies
Act, 1956.All items of income and expenditure having a material bearing
on the financial statements have been recognised on the accrual basis.
All assets and liabilities other than borrowings and deferred taxes)
that are expected to be settled in the ordinary course of business
within 12 months from the Balance Sheet date are separately stated as
current assets or current liabilities respectively . Borrowings
repayable within one year from the date of Balance Sheet, if any have
been disclosed separately.
The accounting policies applied by the company, are consistent with
those used in the previous year
b. Use of estimates
The Preparation of financial statements in conformity with generally
accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of financial statements and notes thereto
and the reported amounts of revenue and expenses during the accounting
year. Actual results could differ from those estimates,
c. Fixed assets and depreciation
Fixed assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any, Cost includes all direct expenses incurred
to bring an asset to working condition for its intended use .Financing
costs, if any , relating to acquisition of qualifying fixed assets are
also to the extent they relate to the period till such assets are ready
to be put to use. Amounts paid under contractual terms for purchasing
fixed assets and fixed assets acquired but not put to use at the
Balance Sheet date are classified as Capital Work in Progress.
Assets interred to be sold or otherwise disposed off within twelve
months from the Balance Sheet date, if any, are classified as other
current assets and are disclosed as assets held for disposal, and are
stated at the lower of net book value as estimated by management.
Depreciation
Depreciation on fixed assets other than intangible assets and leasehold
improvements is provided on written down value method pro-rata to the
period of use of the assets, at the annual depreciation rates stipulated
in schedule XIV to the companies Act, 1956.
d. Intangible assets
- License of Film Rights
Costs incurred towards purchase of License of Film Rights are
depreciated on Straight Line method pro-rata to the period of use of
the assets, at the annual depreciation rates stipulated in schedule XIV
to the companies Act, 1956.
e. Impairment
The Carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The recovemble amount is
the greater of the asset's net selling price and value in use.
In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average cost of
capital. After impairment, depreciation is provided on the revised
carrying amount of the assets.
f. investments
- Long-Term investments
Securities intended at the of investment to be held for 12 months or
more are classified as long term investments and are stated at cost,
adjusted for any diminution In value that is not temporary in nature.
Long term investments that are intended to be disposed within 12 months
from the balance sheet date are reclassified as current investments,
and are recorded at the lower of cost and carrying value as at the date
of transfer.
g. Debtors & Creditors
- the Debtors & Creditors balances are subject to confirmation by the
respective parties.
h. Employee benefit plans
Employee benefit plans comprise defined contribution plans,
The Company contributes to a gratuity fund maintained by the Life
Insurance Corporation of India ('LIC') based upon actuarial valuation.
i. Taxation
Tax expenses comprise current, deferred taxes, Provisions for Current
taxes are made as per the current tax laws as regulated by the Income
Tax Act, 1961, Deferred income taxes are recognized for the future tax
consequences attributable to timing differences between financial
statement determination of income and their recognition for tax
purposes. The effect on deferred tax. assets and liabilities of a
change in tax rates is recognized in income using the tax rates and tax
laws that, have been enacted or substantively enacted by the balance
sheet date .Deferred tax assets are recognized and carried forward 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 .At each balance sheet date the company
re-assesses unrecognized deferred tax assets and recognizes any
unrecognized deferred tax assets to the extent that it has become
reasonably certain or virtually certain, as the case may be that
sufficient future taxable income will be available against which such
deferred tax assets cab be realized Fringe benefit tax is not
applicable, as it has been abolished from the Act,
j. Earnings per share
The earnings considered in ascertaining the company's earnings per
share are the net profit after tax. The number of shares used in
computing the basic earnings per share is the weighted average number
of equity shares outstanding during the year. The number of shares used
in computing diluted earnings per share comprises the weighted average
shares considered for deriving the basic earnings per share and also the
weighted average shares, if any which would have been issued on the
conversion of all dilative potential equity shares,
k. Revenue Recognition
- Theatrical Exhibition income is recognized when tickets are being sold
and movie is exhibited.
- Distribution Income is being recognized on the basis of Box office
collections received from various exhibitors at gross amount inclusive
of taxes.
- Evert income is being recognized when such event is actually
conducted and as per the terms of the relevant agreement.
- Safe of Rights income is being recognized when title to such right is
being transferred and as per the terms and conditions of the relevant
agreement
- Interest income is being recognized or time proportion basis.
l. Foreign currency transactions.
The Company had been following accounting standard 11 for recognizing
foreign Exchange Differences which is disclosed as below:
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of transaction. At the year end,
monetary items are converted into rupee equivalents at the year end
exchange rates, No-monetary items which are carried at historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction.
All the exchange differences arising n settlement / conversion of
foreign currency transactions are included in the profit and loss
account, except in cases where they relate to the acquisition of fixed
assets from outside India, in which case they are adjusted in the cost
of corresponding asset.
m. Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past event and 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
their present values and are determined based on management's estimate
of the amount required to settle the obligation at the balance sheet
date. These are reviewed at each balance sheet date and adjusted to
reflect the management's current estimates.
n. Segment reporting
Segments have been identified in line with the Accounting Standards on
Segment Reporting (AS 17) prescribed by Companies (Accounting
Standards) Rules, 2006, taking into account the nature of services, the
different risks and returns, the organizational structure and the
internal financial reporting system. The Company is engaged in the
business of Distributing movies, Serial broadcasts, and theatrical
exhibition of movies. It has its operations confined only within India.
Based on the dominant source and nature of risk and returns of the
Company, its internal organization and management structure and its
system of internal financial reporting, business segment has been
identified as the primary segment.
Jun 30, 2010
A. Basis of Preparation of financial statements
The accompanying financial statements have been prepared under the
historical cost convention and are in compliance with the applicable
accounting standards issued by the Institute of Chartered Accountants
of India ('ICAI') as referred to in section 211(3C) of the Companies
Act, 1956.Aii items of income and expenditure having a material bearing
on the financial statements have been recognized on the accrual basis.
All assets and liabilities other than borrowings and deferred taxes
that are expected to be settled in the ordinary course of business
within 12 months from the Balance Sheet date are separately stated as
current assets or current liabilities respectively . Borrowings
repayable within one year from the date of Balance Sheet, if any have
been disclosed separately.
The accounting policies applied by the company, are consistent with
those used in the previous year.
b. Use of estimates
The Preparation of financial statements in conformity with generally
accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of financial statements and notes thereto
and the reported amounts of revenue and expenses during the accounting
year. Actual results could differ from those estimates.
c. Fixed assets and depreciation Fixed assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost includes all direct expenses incurred
to bring an asset to working condition for its intended use .Financing
costs, if any, relating to acquisition of qualifying fixed assets are
also to the extent they relate to the period till such assets are ready
to be put to use.
Amounts paid under contractual terms for purchasing fixed assets and
fixed assets acquired but not put to use at the Balance Sheet date are
classified as Capital Work in Progress.
Assets intended to be sold or otherwise disposed off within twelve
months from the Balance Sheet date, if any, are classified as other
current assets and are disclosed as assets held for disposal, and are
stated at the lower of net book value as estimated by management.
Depreciation
Depreciation on fixed assets other than intangible assets and leasehold
improvements is provided on written down value method pro-rata to the
period of use of the assets, at the annual depreciation rates
stipulated in schedule XIV to the companies Act, 1956.
d. Intangible assets Computer Software
Costs incurred towards purchase of computer are depreciated on written
down value method pro-rata to the period of use of the assets, at the
annual depreciation rates stipulated in schedule XIV to the companies
Act, 1956.
e. Impairment
The Carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset s net selling price and value in use.
In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average cost of
capital. After impairment, depreciation is provided on the revised
carrying amount of the assets.
f. Investments Long-Term Investments
Securities intended at the time of investment to be held for 12 months
or more are classified as long term investments and are stated at cost
, adjusted for any diminution in value that is not temporary in nature.
Long term investments that are intended to be disposed within 12 months
from the balance sheet date are reclassified as current investments,
and are recorded at the lower of cost and carrying value as at the date
of transfer.
g. Employee benefit plans
Employee benefit plans comprise defined contribution plans.
The Company contributes to a gratuity fund maintained by the Life
Insurance Corporation of India ( LIC ) based upon actuarial valuation.
h. Taxation
Tax expenses comprise current, deferred taxes. Provision for Current
taxes are made as per the current tax laws as regulated by the Income
Tax Act, 1961. Deferred income taxes are recognized for the future tax
consequences attributable to timing differences between financial
statement determination of income and their recognition for tax
purposes. The effect on deferred tax assets and liabilities of a change
in tax rates is recognized in income using the tax rates and tax laws
that have been enacted or substantively enacted by the balance sheet
date .Deferred tax assets are recognized and carried forward 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. At each balance sheet date the company re-assesses
unrecognized deferred tax assets and recognizes any unrecognized
deferred tax assets to the extent that it has become reasonably certain
or virtually certain, as the case may be that sufficient future taxable
income will be available against which such deferred tax assets can be
realized. Fringe benefit tax is measured at the amount expected to be
paid to the tax authorities with the Income Tax Act, 1961
i. Earnings per share
The earnings considered in ascertaining the company s earnings per
share is the net profit after tax. The number of shares used in
computing the basic earnings per share is the weighted average number
of equity shares outstanding during the year. The number of shares used
in computing diluted earnings per share comprises the weighted average
shares considered for deriving the basic earning per share and also the
weighted average shares , if any which would have been issued on the
conversion of all dilative potential equity shares.
j. Revenue Recognition
- Advertising Income and broadcast fess are recognized when the related
commercial (or) program is telecast.
- Theatrical Exhibition income is recognized when tickets are being
sold and movie is exhibited.
- Distribution income is being recognized on the basis of Box office
collections received from various exhibitors at gross amount inclusive
of taxes.
- Royalty income is being recognized as per the terms and conditions of
the relevant agreement
- Event income is being recognized when such event is actually
conducted and as per the terms of the relevant agreement.
- Sale of Rights income is being recognized when title to such right is
being transferred and as per the terms and conditions of the relevant
agreement
- Interest income is being recognized on time proportion basis.
- Compensation receipts are being recognized when such right to receive
is established as per the relevant contract.
k. Foreign currency transactions
The Company had been following accounting standard 11 for recognizing
Foreign Exchange Differences which is disclosed as below:
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of transaction. At the
yearÃend, monetary items are converted into rupee equivalents at the
year Ãend exchange rates, No monetary items which are carried at
historical cost denominated in a foreign currency are reported using
the exchange rate at the date of the transaction.
All the exchange differences arising on settlement / conversion of
foreign currency transactions are included in the profit and loss
account, except in cases where they relate to the acquisition of fixed
assets from outside India, in which case they are adjusted in the cost
of corresponding asset.
All other laws regulating the Foreign Exchange dealings are followed by
the company.
l. Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past event and 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
their present values and are determined based on management s estimate
of the amount required to settle the obligation at the balance sheet
date. These are reviewed at each balance sheet date and adjusted to
reflect the management s current estimates.
m. Segment reporting
Segments have been identified in line with the Accounting Standards on
Segment Reporting (AS 17) prescribed by Companies (Accounting
Standards) Rules, 2006 , taking into account the nature of services,
the different risks and returns, the organizational structure and the
internal financial reporting system. The Company is engaged in the
business of Distributing movies, Serial broadcasts, and theatrical
exhibition of movies. It has its operations confined only within India.
Based on the dominant source and nature of risk and returns of the
Company, its internal organization and management structure and its
system of internal financial reporting, business segment has been
identified as the primary segment.