Mar 31, 2014
1.1 Basis of preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) read with
General Circular 15/2013 dated September 13, 2013 issued by the
Ministry of Corporate Affairs in respect of Section 133 of Companies
Act, 2013 and the relevant provisions of the Companies Act, 1956. The
financial statements have been prepared on accrual basis under the
historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those
followed in the previous year.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise. Significant estimates used by the
management in the preparation of these financial statements include,
classification of assets and liabilities into current and non-current,
estimates of the economic useful lives of fixed assets,. Any revision
to accounting estimates is recognised prospectively.
1.3 Fixed Assets
Tangible fixed assets are stated at cost less accumulated depreciation
Cost comprises of the purchase price and any attributable cost of bringing
the asset to its working condition for its intended use.
1.4 Inventories
Inventory comprises of unamortised cost of films and cost incurred till
date for under production films. The cost of films is amortised in the
ratio of current revenue to expected total revenue. At the end of each
accounting period, balance unamortised cost is compared with net
expected revenue.if net expected revenue is less than unamortised cost,
the same is written down to net expected revenue. Expenses of under
production films incurred till the films are ready for release are
inventorised.
1.5 Investments:
All long term investments are valued at cost. Provision for diminution
in the value of each long term investment is made to recognise a
decline other than a temporary nature. Current investments are carried
individually at lower of cost or fair value and the resultant decline
is charged to the revenue.
1.6 Revenue Recognition
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.The amount recognised as revenue is exclusive of
value added tax ,service tax and net of trade discounts.
Film production and related income
Revenue from production of movie is recognized on assignment/ sale of
the rights in the concerned movie from the date of their availability
for exploitation or on the date of release of the movie and in some
other cases as per the terms of movie production agreements entered
into with the customer, as applicable. Revenue from other rights in the
movie such as satellite rights, overseas rights, music rights, video
rights, etc., is recognized on assignment / sale of the rights in the
concerned movie from the date of their availability for exploitation,
as applicable."
Interest income
Interest income is recognised on a time proportion basis.
1.7 Depreciation:
Depreciation on fixed assets are provided for in accordance with
schedule XIV of the Companies Act, 1956 on the straight line method.
Depreciation on addition /deduction during the year has been provided
on Pro-rata basis.
1.8 Taxation
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961 .Provision for current income tax is made on current tax rate
based on assessable income computed under Income Tax Act 1961 or Book
profit is computed under section 115JB (MAT) whichever is higher. MAT
credit is recognised subject to requirement of virtual certainity that
sufficient future taxable income will be available for set off.
Deferred tax assets and liabilities are recognised for future tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred Tax assets
are not recognized unless, in the management judgment, there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. The carrying
amount of deferred tax is reviewed at each balance sheet date.
1.9 Earning Per Share:
Earning Per Share is calculated by dividing the net profit or loss for
the period attributable to equity shareholders by the weighted average
number of the equity shares outstanding during the period.
1.10 Impairment of Tangible assets
Carrying amount of assets are reviewed at each Balance Sheet date to
determine whether there is any indication of impairment. An asset is
treated as impaired when the carrying amount of assets exceeds its
recoverable value. An impairment loss is charged to the statment of
profit & loss in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
1.11 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events 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 value and are determined based on the 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.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the company.
Mar 31, 2013
1.01 Basis of preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
1.02 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise. Significant estimates used by the
management in the preparation of these financial statements include ,
classification of assets and liabilities into current and non-current,
estimates of the economic useful lives of fixed assets, . Any revision
to accounting estimates is recognised prospectively.
1.03 Fixed Assets
Tangible fixed assets are stated at cost less accumulated depreciation.
Cost comprises of the purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
1.04 Inventories
Inventory comprises of unamortised cost of films and cost incurred till
date for under production films. The cost of films is amortised in the
ratio of current revenue to expected total revenue. At the end of each
accounting period, balance unamortised cost is compared with net
expected revenue.If net expected revenue is less than unamortised cost,
the same is written down to net expected revenue.
Expenses of under production films incurred till the films are ready
for release are inventorised.
1.05 Investments:
All long term investments are valued at cost. Provision for diminution
in the value of each long term investment is made to recognise a
decline other than a temporary nature. Current Investments are carried
individually at lower of cost or fair value and the resultant decline
is charged to the revenue.
1.06 Revenue Recognition
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.The amount recognised as revenue is exclusive of
value added tax, service tax and net of trade discounts.
Film production and related income
Revenue from production of movie is recognized on assignment/ sale of
the rights in the concerned movie from the date of their availability
for exploitation or on the date of release of the movie as
applicable.Revenue from other rights in the movie such as satellite
rights, overseas rights, music rights, video rights, etc., is
recognized on assignment/ sale of the rights in the concerned movie
from the date of their availability for exploitation, as applicable.
Interest income
Interest income is recognised on a time proportion basis.
1.07 Depreciation
Depreciation on fixed assets are provided for in accordance with
schedule XIV of the Companies Act, 1956 on the straight line method.
Depreciation on addition/deduction during the year has been provided on
Pro-rata basis.
1.08 Taxation
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961 .Provision for current income tax is made on current tax rate
based on assessable income computed under Income Tax Act 1961 or Book
profit is computed under section 115JB (MAT) whichever is higher. MAT
credit is recognised subject to requirement of virtual certainity that
sufficient future taxable income will be available for set off.
Deferred tax assets and liabilities are recognised for future tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred Tax assets
are not recognized unless, in the management judgment, there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. The carrying
amount of deferred tax is reviewed at each balance sheet date.
1.09 Earning Per Share
Earning Per Share is calculated by dividing the net profit or loss for
the period attributable to equity shareholders by the weighted average
number of the equity shares outstanding during the period.
1.10 Impairment of tangible assets
Carrying amount of assets are reviewed at each Balance Sheet date to
determine whether there is any indication of impairment. An asset is
treated as impaired when the carrying amount of assets exceeds its
recoverable value. An impairment loss is charged to the statment of
profit & loss in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
1.11 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events 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 value and are determined based on the 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.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the company.
Mar 31, 2010
1) Basis of preparation of Financial Statements :
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with applicable
accounting standards issued by the Institute of Chartered Accountants
of India.
2) Revenue Recognition :
Expenses and income considered payable and receivable respectively have
been accounted for on accrual basis.Where the ability to assess the
ultimate collection with reasonable certainty is lacking at the time of
raising any claim, revenue recognition is postponed to the extent of
uncertainty involved.
3) Fixed Assets :
Fixed assets are stated at historical cost less accumulated
depreciation. Cost includes purchase price and all other attributable
cost to bring the assets to its working condition for the intended use.
4) Depreciation :
Depreciation on fixed assets are provided for in accordance with
schedule XIV of th Companies Act, 1956 on the straight line method.
Depreciation on addition/deduction during the year has been provided on
Pro-rata basis.
5) Investments :
Investments are classified as Long term investments and valued at cost.
Provision for decline in the value of investments is made wherever the
decline is other than of a temporary nature.
6) Accounting for Taxes on Income :
Provision for Current Tax has been made in accordance with the
provisions of Income Tax Act, 1961.
Deferred Tax is recognised for all timing difference being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. Deferred tax assets are not recognised unless there is a
vitrual cetainity that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
7) Earning Per Share :
Earning Per Share is calculated by dividing the net profit or loss for
the period attributable to equity share holders by the weighted average
number of the equity shares outstanding during the period.