Mar 31, 2018
1.1 Summary of Significant Accounting Policies
(a) Property, Plant & Equipment
Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
Subsequent costs are included in the assetâs carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if deemed appropriate.
Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.
(b) Intangible asset
Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebate less accumulated amortisation/ depletion and impairment loss, if any. Such cost includes purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.
Subsequent costs are included in the assetâs carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the items will flow to the Company and the cost can be measured reliably.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.
(c) Depreciation and amortisation
Depreciation on property, plant and equipment is provided using straight-line basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under Part C of Schedule II of the Companies Act,2013, whichever is lower.
Depreciation for property, plant and equipment purchased/sold during a period is proportionately charged. Fixed Assets individually costing Rs. 5,000/- or less are fully depreciated in the year of acquisition. The Company has estimated the useful lives for the fixed assets as follows :
Office Building 58 years
Plant & Machinery 3 - 15 years
Furniture & Fixtures 10 years
Motor Vehicle 8 - 10 years
Websites/Brands are recognised as Intangible Asset if it is expected that such assets will generate future economic benefits and amortised over their useful life not exceeding four/ten years or estimated useful life whichever is lower.
Computer Software 5 years
(d) Borrowing Costs
Borrowing Cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed in the period they are incurred.
(e) Impairment of non-financial assets - property, plant and equipment and intangible assets
The Company assesses at each reporting dates as to whether there is any indication that any property, plant and equipment and intangible assets may be impaired. If any such indication exists the recoverable amount of an asset is estimated to determine the extent of impairment, if any.
If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognized in the Statement of the Profit and Loss to the extent the assetâs carrying amount exceeds its recoverable amount.
The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
(f) Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.
On the initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.
Current investments are carried in the financial statements at cost. Non-Current investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit or loss.
(g) Inventories
The media content (copyrights) are stated at lower of cost/unamortised cost or realisable value. The Company evaluates the realisable value and/or revenue potential of inventory based on management estimate of market conditions and future demand and appropriate impairment is made in cases where accelerated impairment is warranted.
Inventories of Raw material Stock (Retail pack/ DVDs/ CDs etc.) are valued at cost or estimated net realizable value whichever is lower.
Projects in progress and movies under production are stated at cost. Cost comprises the cost of materials, the cost of services, labour and other expenses.
The borrowing costs directly attributable to a movie/game is capitalised as part of the cost.
(h) Cash and cash equivalents
Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
(i) Cash Flow Statement
Cash flows are stated using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
(j) Financial Assets
A. Initial recognition and measurement :
All financial assets are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition of financial assets, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.
B. Subsequent measurement :
a) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
b) Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in the above categories is fairly valued through profit or loss.
C. Investment in subsidiaries, associates and joint ventures :
The Company has accounted for its investments in subsidiaries, associates and joint venture at cost.
D. Impairment of Financial assets :
In accordance with Ind AS 109, the Company uses âExpected Credit Lossâ (ECL) model, for evaluating impairment assessment of financial assets other than those measured at fair value through profit and loss (FVTPL).
The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
(k) Financial Liabilities
A. Initial recognition and measurements :
All financial liabilities are recognized initially at fair value and in case of loans net of directly attributable cost. Fees of recurring nature are directly recognised in profit or loss as finance cost.
B. Subsequent measurement :
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
(l) Employee Benefits Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.
Long Term Employee Benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability as at the Balance Sheet date on the basis of actuarial valuation.
Post-employment Benefits Defined Contribution Plans
A Defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions towards Provident Fund and Pension Scheme. The Companyâs contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.
Gratuity
The liability in respect of gratuity and other post employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employeeâs services.
Re-measurement of Defined benefit plans in respect of postemployment and other long term benefits are charged to the Other Comprehensive Income.
(m) Tax Expenses
The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity.
Current Tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance Sheet date.
Deferred Tax
Deferred Tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred income tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilised.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.
(n) Foreign currencies transactions and translation
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
Exchange differences arising on settlement of transactions are recognised in Statement of Profit and Loss.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Exchange differences arising on translation are recognised in Other Comprehensive Income.
(o) Revenue recognition
Revenue is recognised to the extent it is probable that economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Sales of Media content is recognised, when the significant risks and rewards have been transferred to the customers in accordance with the agreed terms.
Sale of goods
Revenue from sale of goods (ACDs/ VCDs /DVDs /ACS/ BRDs) is recognised when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of goods measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates and excluding taxes or duties collected on behalf of the government.
Income from Services
Revenues from services are recognised when contractual commitments are delivered net of returns, trade discounts and rebates. The company collects GST on behalf of the government and, therefore, it is not an economic benefit flowing to the company. Hence, it is excluded from revenue.
(p) Other income
i) Interest Income
Interest Income from a financial asset is recognised on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest Income is included under the head â other incomeâ in the statement of profit and loss.
ii) Dividend Income
Dividend income is recognised when the Companyâs right to receive the payment has been established.
iii) Rent Income is recognised on an accrual basis as per the agreed terms on straight line basis.
(q) Purchase of rights
In respect of satellite rights, as per the terms and conditions of the agreement with producer/seller, with respect to the date of agreement of purchase and the existence of Censor Certificate.
In respect of other rights like Video and other rights on the date of the agreement of purchase with producer/seller, provided the Censor Certificate is in existence.
(r) Earnings per share
Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.
(s) Provisions & Contingencies
Provisions are recognised when the Company has a present obligation as a result of a past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a financial cost.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements.
Mar 31, 2017
1 Significant Accounting Policies
a. Basis of preparation
The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified).
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
b. Use of estimates
The preparation and presentation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized prospectively in the period in which results are known or materialized.
c. Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost including related internal costs of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.
Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.
Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.
d. Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under Part C of Schedule II of the Companies Act, 2013, whichever is lower. Depreciation for assets purchased/sold during a period is proportionately charged. Fixed assets individually costing Rs. 5,000 or less are fully depreciated in the year of acquisition. The Company has estimated the useful lives for the fixed assets as follows:
Office Building 58 years
Plant&Machinery 3-15years
Furniture&Fixtures lOyears
MotorVehicle 8-10years
e. Intangible assets
Intangible Assets are recorded at acquisition cost and in case of assets acquired on merger at their carrying values. Websites/Brands are recognized as Intangible Asset if it is expected that such assets will generate future economic benefits and amortized over their useful life not exceeding four/ten years or estimated useful life whichever is lower.
Computer Software 5 years
f. Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur except Bill Discounting charges which are being carried forward on time proportion basis.
g. Impairment of assets
The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
h. Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.
Current investments are carried in the financial statements at cost. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.
I. Inventories
Projects in progress and movies under production are stated at cost. Cost comprises the cost of materials, the cost of services, labored other expenses.
Raw Stock, Digital Video Discs/Compact Discs stock are stated at lower of cost or net realizable value.
The copyrights are valued at a certain percentage of cost based on the nature of rights. The Company evaluates the realizable value and/or revenue potential of inventory based on management estimate of market conditions and future demand and appropriate write down is made in cases where accelerated write down is warranted.
The borrowing costs directly attributable to a movie/game is capitalized as part of the cost.
j. Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
Sale of goods
Revenue from sale of goods (ACDs/VCDs/DVDs/BRDs) is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods; net of returns, trade discounts and rebates. The company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.
Sale of rights
Sale of rights are recognized on the date of entering into agreement for the sale of the same, provided the Censor Certificate is in existence.
Income from services
Revenues from services are recognized when contractual commitments are delivered in full net of returns, trade discounts and rebates. The company collects service tax on behalf of the government and, therefore, it is not an economic benefit flowing to the company. Hence, it is excluded from revenue.
Interest
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.
Dividends
Dividend income is recognized when the company''s right to receive dividend is established by the reporting date.
Others
Revenues relating to complete Feature Films are recognized in the year of release of feature films.
The cost of drama covering the cost of purchase of copyrights and shooting expenses is expensed out as a certain percentage of total cost.
Revenue pertaining to release of music offilm is recognized on the date of its release.
k. Purchase of rights
In respect of satellite rights, as per the terms and conditions of the agreement with producer / seller, with respect to the date of agreement of purchase and the existence of Censor Certificate.
In respect of other rights like Video and other rights on the date of the agreement of purchase with producer /seller, provided the Censor Certificate is in existence.
I. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and deposits with banks.
m. Foreign currency translation
Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rate prevailing on such date. Exchange differences arising from such translation are recognized in the Statement of Profit and LossA/c.
n. Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the Employees provident fund and Employees pension fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.
Gratuity has been accounted on the basis of actuarial valuation and the contribution thereof paid / payable is charged to the Statement of Profit & Loss each year.
Leave encashment benefits have been accounted on the basis of acturial valuation done. The Projected Unit Credit Method as stipulated by AS-15 has been used to determine liability as on 31st March 2017.
o. Income tax
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences 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. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset 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.
The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.
p. 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.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
q. 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 embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
r. Contingent Liabilities and Contingent Assets
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.
Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never realize.
The Company has only one class of shares referred to as equity shares having a par value of Rs.10 per share. Each shareholder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to approval of shareholders, except in case of interim dividend. In the event of liquidation, the share holders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.
iii) For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:
a) Aggregate number of shares allotted as fully paid-up pursuant to the contracts without payment being received in cash is NIL
b) 1,48,86,678 equity shares were issued as bonus on 29th August, 2011 in the ratio of 3:1 and 41,10372 equity shares were issued as bonus on 26th March, 2011 in the ratio of 9:1.
c) Aggregate number of shares bought back is NIL
Mar 31, 2015
A. Basis of preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(GAAP) under the historical cost convention on the accrual basis. GAAP
comprises mandatory accounting standards as prescribed under Section
133 of the Companies Act, 2013 ('Act') read with Rule 7 of the
Companies (Accounts) Rules, 2014, the provisions of the Act (to the
extent notified).
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
b. Use of estimates
The preparation and presentation of financial statements in accordance
with GAAP requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Differences between the actual results and
estimates are recognised prospectively in the period in which results
are known or materialised.
c. Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly
attributable cost including related internal costs of bringing the
asset to its working condition for the intended use. Any trade
discounts and rebates are deducted in arriving at the purchase price.
Adjustments arising from exchange rate variations attributable to the
fixed assets are capitalised. Subsequent expenditure related to an
item of fixed asset is added to its book value only if it increases the
future benefits from the existing asset beyond its previously assessed
standard of performance. All other expenses on existing fixed assets,
including day-to-day repair and maintenance expenditure and cost of
replacing parts, are charged to the statement of profit and loss for
the period during which such expenses are incurred.
Gains or losses arising from derecognition of fixed assets are measured
as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of profit and
loss when the asset is derecognized.
d. Depreciation on tangible fixed assets Depreciation on fixed assets is
calculated on a straight-line basis using the rates arrived at based on
the useful lives estimated by the management, or those prescribed under
Part C of Schedule II of the Companies Act, 2013, whichever is lower.
Depreciation for assets purchased/sold during a period is
proportionately charged. Fixed assets individually costing Rs. 5,000 or
less are fully depreciated in the year of acquisition. The Company has
estimated the useful lives for the fixed assets as follows :
Office Building 58 years
Plant & Machinery 3 - 15 years
Furniture & Fixtures 10 years
Motor Vehicle 8 - 10 years
e. Intangible assets
Intangible Assets are recorded at acquisition cost and in case of
assets acquired on merger at their carrying values. Websites/Brands
are recognised as Intangible Asset if it is expected that such assets
will generate future economic benefits and amortised over their useful
life not exceeding four/ten years or estimated useful life whichever is
lower. Computer Software 5 years
f. Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur except Bill Discounting charges which
are being carried forward on time proportion basis.
g. Impairment of assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the Statement of Profit and Loss Account. If at the
Balance Sheet date there is an indication that if a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount.
h. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long- term investments.
On initial recognition, all investments are measured at cost. The cost
comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties. If an investment is acquired, or
partly acquired, by the issue of shares or other securities, the
acquisition cost is the fair value of the securities issued. If an
investment is acquired in exchange for another asset, the acquisition is
determined by reference to the fair value of the asset given up or by
reference to the fair value of the investment acquired, whichever is
more clearly evident.
Current investments are carried in the financial statements at cost.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
i. Inventories
Projects in progress and movies under production are stated at cost.
Cost comprises the cost of materials, the cost of services, labour and
other expenses.
Raw Stock, Digital Video Discs/Compact Discs stock are stated at lower
of cost or net realisable value.
The copyrights are valued at a certain percentage of cost based on the
nature of rights. The Company evaluates the realisable value and/or
revenue potential of inventory based on management estimate of market
conditions and future demand and appropriate write down is made in
cases where accelerated write down is warranted.
The borrowing costs directly attributable to a movie/game is
capitalised as part of the cost.
j. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:
Sale of goods
Revenue from sale of goods (ACDs/VCDs/DVDs/ACS/ BRDs) is recognized
when all the significant risks and rewards of ownership of the goods
have been passed to the buyer, usually on delivery of the goods; net of
returns, trade discounts and rebates. The company collects sales taxes
and value added taxes (VAT) on behalf of the government and, therefore,
these are not economic benefits flowing to the company. Hence, they are
excluded from revenue.
Sale of rights
Sale of rights are recognised on the date of entering into agreement
for the sale of the same, provided the Censor Certificate is in
existence.
Income from services
Revenues from services are recognized when contractual commitments are
delivered in full net of returns, trade discounts and rebates. The
company collects service tax on behalf of the government and, therefore,
it is not an economic benefit flowing to the company. Hence, it is
excluded from revenue.
Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
Dividends
Dividend income is recognized when the company's right to receive
dividend is established by the reporting date. Others
Revenues relating to complete Feature Films are recognised in the year
of release of feature films.
The cost of drama covering the cost of purchase of copyrights and
shooting expenses is expensed out as a certain percentage of total
cost.
Revenue pertaining to release of music of film is recognized on the
date of its release.
k. Purchase of rights
In respect of satellite rights, as per the terms and conditions of the
agreement with producer / seller, with respect to the date of agreement
of purchase and the existence of Censor Certificate.
In respect of other rights like Video and other rights on the date of
the agreement of purchase with producer /seller, provided the Censor
Certificate is in existence.
l. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and deposits with banks.
m. Foreign currency translation
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of the transaction. Monetary
assets and liabilities denominated in foreign currency as at balance
sheet date are converted at the exchange rate prevailing on such date.
Exchange differences arising from such translation are recognized in
the Statement of Profit and Loss A/c.
n. Retirement and other employee benefits Retirement benefit in the
form of provident fund is a defined contribution scheme. The
contributions to the Employees provident fund and Employees pension
fund are charged to the statement of profit and loss for the year when
the contributions are due. The company has no obligation, other than
the contribution payable to the provident fund.
Gratuity has been accounted on the basis of actuarial valuation and the
contribution thereof paid / payable is charged to the Statement of
Profit & Loss each year.
Leave encashment benefits have been accounted on the basis of acturial
valuation done. The Projected Unit Credit Method as stipulated by AS-15
has been used to determine liability as on March 31, 2015.
o. Income tax
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred income taxes reflect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable timing
differences. Deferred tax assets are recognized for deductible timing
differences 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. In situations where the company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
profits.
At each reporting date, the company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax asset 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.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes-down the carrying amount of deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
p. 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.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
q. 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
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
r. Contingent Liabilities and Contingent Assets
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does
not recognize a contingent liability but discloses its existence in the
financial statements. Contingent Assets are not recognised in the
financial statements since this may result in the recognition of income
that may never realise.
s. Unamortised Expenses - Share Issue Expenses The "Unamortised
Expenses - Share Issue Expenses" includes various expenditure incurred
by the Company towards fund raising through public issue of equity
shares of the Company (IPO). The said amount has be written- off
against the balance appearing in Securities Premium account.
Mar 31, 2014
A. Basis of preparation
The fnancial statements of the company have been prepared in accordance
with generally accepted accounting principles in India (GAAP). The
company has prepared these fnancial statements to comply in all
material respects with the accounting standards notifed under the
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956. The fnancial statements
have been prepared on an accrual basis and under the historical cost
convention.
The accounting policies adopted in the preparation of fnancial
statements are consistent with those of previous year.
b. Use of estimates
The preparation and presentation of fnancial statements in accordance
with GAAP requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities on the date of the
fnancial statements and the reported amount of revenues and expenses
during the reporting period. Differences between the actual results and
estimates are recognised prospectively in the period in which results
are known or materialised.
c. Tangible fxed assets
Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly
attributable cost including related internal costs of bringing the
asset to its working condition for the intended use. Any trade
discounts and rebates are deducted in arriving at the purchase price.
Adjustments arising from exchange rate variations attributable to the
fxed assets are capitalised.
Subsequent expenditure related to an item of fxed asset is added to its
book value only if it increases the future benefits from the existing
asset beyond its previously assessed standard of performance. All other
expenses on existing fxed assets, including day-to-day repair and
maintenance expenditure and cost of replacing parts, are changed to the
statement of Profit and loss for the period during which such expenses
are incurred.
Gains or losses arising from derecognition of fxed assets are measured
as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of Profit and
loss when the asset is derecognized.
d. Depreciation on tangible fxed assets
Depreciation on fxed assets is calculated on a straight-line basis
using the rates arrived at based on the useful lives estimated by the
management, or those prescribed under the Schedule XIV to the Companies
Act, 1956, whichever is higher. Fixed assets individually costing Rs.
5,000 or less are fully depreciated in the year of acquisition. The
company has used the following rates to provide depreciation on its
fxed assets:
e. Intangible assets
Intangible Assets are recorded at acquisition cost and in case of
assets acquired on merger at their carrying values. Websites/Brands
are recognised as Intangible Asset if it is expected that such assets
will generate future economic benefits and amortised over their useful
life not exceeding four/ten years or estimated useful life whichever is
lower.
f. Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur except Bill Discounting charges which
are being carried forward on time proportion basis.
g. Impairment of assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the Statement of Profit and Loss Account. If at the
Balance Sheet date there is an indication that if a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed
and the asset is refected at the recoverable amount.
h. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classifed as current investments. All other investments are
classifed as long-term investments.
On initial recognition, all investments are measured at cost. The cost
comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties. If an investment is acquired, or
partly acquired, by the issue of shares or other securities, the
acquisition cost is the fair value of the securities issued. If an
investment is acquired in exchange for another asset, the acquisition
is determined by reference to the fair value of the asset given up or
by reference to the fair value of the investment acquired, whichever is
more clearly evident.
Current investments are carried in the fnancial statements at cost.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of Profit and loss.
i. Inventories
Projects in progress and movies under production are stated at cost.
Cost comprises the cost of materials, the cost of services, labour and
other expenses.
Raw Stock, Digital Video Discs/Compact Discs stock are stated at lower
of cost or net realisable value.
The copyrights are valued at a certain percentage of cost based on the
nature of rights. The Company evaluates the realisable value and/or
revenue potential of inventory based on management estimate of market
conditions and future demand and appropriate write down is made in
cases where accelerated write down is warranted.
The borrowing costs directly attributable to a movie/game is
capitalised as part of the cost.
j. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will fow to the company and the revenue can be
reliably measured. The following specific recognition criteria must also
be met before revenue is recognized:
Sale of goods
Revenue from sale of goods (ACDs/VCDs/DVDs/ACS/BRDs) is recognized when
all the significant risks and rewards of ownership of the goods have
been passed to the buyer, usually on delivery of the goods; net of
returns, trade discounts and rebates. The company collects sales taxes
and value added taxes (VAT) on behalf of the government and, therefore,
these are not economic benefits fowing to the company. Hence, they are
excluded from revenue.
Sale of rights
Sale of rights are recognised on the date of entering into agreement
for the sale of the same, provided the Censor Certifcate is in
existence.
Income from services
Revenues from services are recognized when contractual commitments are
delivered in full net of returns, trade discounts and rebates. The
company collects service tax on behalf of the government and,
therefore, it is not an economic benefit fowing to the company. Hence,
it is excluded from revenue.
Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of Profit and loss.
Dividends
Dividend income is recognized when the company''s right to receive
dividend is established by the reporting date.
Others
Revenues relating to complete Feature Films are recognised in the year
of release of feature flms.
The cost of drama covering the cost of purchase of copyrights and
shooting expenses is expensed out as a certain percentage of total
cost.
Revenue pertaining to release of music of flm is recognized on the date
of its release.
k. Purchase of rights
In respect of satellite rights, as per the terms and conditions of the
agreement with producer / seller, with respect to the date of agreement
of purchase and the existence of Censor Certifcate.
In respect of other rights like Video and other rights on the date of
the agreement of purchase with producer /seller, provided the Censor
Certifcate is in existence.
l. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash fow statement
comprise cash at bank and in hand and deposits with banks.
m. Foreign currency translation
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of the transaction. Monetary
assets and liabilities denominated in foreign currency as at balance
sheet date are converted at the exchange rate prevailing on such date.
Exchange differences arising from such translation are recognized in
the Statement of Profit and Loss A/c.
n. Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defned
contribution scheme. The contributions to the Employees provident fund
and Employees pension fund are charged to the statement of Profit and
loss for the year when the contributions are due. The company has no
obligation, other than the contribution payable to the provident fund.
Gratuity has been accounted on the basis of actuarial valuation and the
contribution thereof paid / payable is charged to the Statement of
Profit & Loss each year.
Leave encashment benefits have been accounted on the basis of acturial
valuation done. The Projected Unit Credit Method as stipulated by AS-15
has been used to determine liability as on 31st March 2013.
o. Income tax
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred income taxes refect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable timing
differences. Deferred tax assets are recognized for deductible timing
differences only to the extent that there is reasonable certainty that
suffcient future taxable income will be available against which such
deferred tax assets can be realized. In situations where the company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
Profits.
At each reporting date, the company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax asset to the extent
that it has become reasonably certain or virtually certain, as the case
may be, that suffcient future taxable income will be available against
which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes-down the carrying amount of deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that suffcient future taxable
income will be available against which deferred tax asset can be
realized. Any such write- down is reversed to the extent that it
becomes reasonably certain or virtually certain, as the case may be,
that suffcient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
p. 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.
For the purpose of calculating diluted earnings per share, the net
Profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
q. 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
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to refect the current best estimates.
r. Contingent Liabilities and Contingent Assets
A contingent liability is a possible obligation that arises from past
events whose existence will be confrmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required
to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
fnancial statements.
Contingent Assets are not recognised in the fnancial statements since
this may result in the recognition of income that may never realise.
s. Unamortised Expenses - Proposed Share Issue Expenses
The "Unamortised Expenses - Proposed Share Issue Expenses" includes
various expenditure incurred by the Company towards proposed fund
raising through public issue of equity shares of the Company (IPO). The
said amount shall be written-off as per the provisions of the Companies
Act, 1956.
iii) For the period of five years immediately preceding the date as at
which the Balance Sheet is prepared :
a) Aggregate number of shares alloted as fully paid-up pursuant to the
contracts without payment being received in cash is NIL
b) 1,48,86,678 equity shares were issued as bonus on 29th August, 2011
in the ratio of 3:1 and 41,10,372 equity shares were issued as bonus on
26th March, 2011 inthe ratio of 9:1.
c) Aggregate number of shares bought back is NIL
Mar 31, 2013
A) Basis of preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(GAAP). The company has prepared these financial statements to comply
in all material respects 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 an accrual basis and under the
historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
b) Use of estimates
The preparation and presentation of financial statements in accordance
with GAAP requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Differences between the actual results and
estimates are recognised prospectively in the period in which results
are known or materialised.
c) Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly
attributable cost including related internal costs of bringing the
asset to its working condition for the intended use. Any trade
discounts and rebates are deducted in arriving at the purchase price.
Adjustments arising from exchange rate variations attributable to the
fixed assets are capitalised.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are
changed to the statement of profit and loss for the period during which
such expenses are incurred.
Gains or losses arising from derecognition of fixed assets are measured
as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of profit and
loss when the asset is derecognized.
d) Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on a straight-line basis
using the rates arrived at based on the useful lives estimated by the
management, or those prescribed under the Schedule XIV to the Companies
Act, 1956, whichever is higher. Fixed assets individually costing Rs.
5,000 or less are fully depreciated in the year of acquisition. The
company has used the following rates to provide depreciation on its
fixed assets:
e) Intangible assets
Intangible Assets are recorded at acquisition cost and in case of
assets acquired on merger at their carrying values. Websites/Brands
are recognised as Intangible Asset if it is expected that such assets
will generate future economic benefits and amortised over their useful
life not exceeding four/ten years or estimated useful life whichever is
lower.
f) Borrowing costs
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the Statement of Profit and Loss Account. If at the
Balance Sheet date there is an indication that if a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount.
h) Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost
comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties. If an investment is acquired, or
partly acquired, by the issue of shares or other securities, the
acquisition cost is the fair value of the securities issued. If an
investment is acquired in exchange for another asset, the acquisition
is determined by reference to the fair value of the asset given up or
by reference to the fair value of the investment acquired, whichever is
more clearly evident.
Current investments are carried in the financial statements at cost.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
i) Inventories
Projects in progress and movies under production are stated at cost.
Cost comprises the cost of materials, the cost of services, labour and
other expenses.
Raw Stock, Digital Video Discs/Compact Discs stock are stated at lower
of cost or net realisable value.
The copyrights are valued at a certain percentage of cost based on the
nature of rights. The Company evaluates the realisable value and/or
revenue potential of inventory based on management estimate of market
conditions and future demand and appropriate write down is made in
cases where accelerated write down is warranted.
The borrowing costs directly attributable to a movie/game is
capitalised as part of the cost.
j) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:
Sale of goods
Revenue from sale of goods (ACDs/VCDs/DVDs/ACS/BRDs) is recognized when
all the significant risks and rewards of ownership of the goods have
been passed to the buyer, usually on delivery of the goods; net of
returns, trade discounts and rebates. The company collects sales taxes
and value added taxes (VAT) on behalf of the government and, therefore,
these are not economic benefits flowing to the company. Hence, they are
excluded from revenue.
Sale of rights
Sale of rights are recognised on the date of entering into agreement
for the sale of the same, provided the Censor Certificate is in
existence.
Income from services
Revenues from services are recognized when contractual commitments are
delivered in full net of returns, trade discounts and rebates. The
company collects service tax on behalf of the government and,
therefore, it is not an economic benefit flowing to the company. Hence,
it is excluded from revenue.
Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
Dividends
Dividend income is recognized when the company''s right to receive
dividend is established by the reporting date.
Others
Revenues relating to complete Feature Films are recognised in the year
of release of feature films.
The cost of drama covering the cost of purchase of copyrights and
shooting expenses is expensed out as a certain percentage of total
cost.
Revenue pertaining to release of music of film is recognized on the
date of its release.
k) Purchase of rights
In respect of satellite rights, as per the terms and conditions of the
agreement with producer / seller, with respect to the date of agreement
of purchase and the existence of Censor Certificate.
In respect of other rights like Video and other rights on the date of
the agreement of purchase with producer /seller, provided the Censor
Certificate is in existence.
I) Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and deposits with banks.
m) Foreign currency translation
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of the transaction. Monetary
assets and liabilities denominated in foreign currency as at balance
sheet date are converted at the exchange rate prevailing on such date.
Exchange differences arising from such translation are recognized in
the Statement of Profit and Loss A/c.
n) Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined
contribution scheme. The contributions to the Employees provident fund
and Employees pension fund are charged to the statement of profit and
loss for the year when the contributions are due. The company has no
obligation, other than the contribution payable to the provident fund.
Gratuity has been accounted on the basis of actuarial valuation and the
contribution thereof paid / payable is charged to the Statement of
Profit & Loss each year.
Leave encashment benefits have been accounted on the basis of acturial
valuation done. The Projected Unit Credit Method as stipulated by AS-15
has been used to determine liability as on 31st March 2013.
o) Income tax
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred income taxes reflect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable timing
differences. Deferred tax assets are recognized for deductible timing
differences 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. In situations where the company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
profits.
At each reporting date, the company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax asset 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.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes-down the carrying amount of deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain, as the case may be,
that sufficient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
p) 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.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
q) 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
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
r) Contingent Liabilities and Contingent Assets
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
Contingent Assets are not recognised in the financial statements since
this may result in the recognition of income that may never realise.
s) Unamortised Expenses - Proposed Share Issue Expenses
The "Unamortised Expenses - Proposed Share Issue Expenses" includes
various expenditure incurred by the Company towards proposed fund
raising through public issue of equity shares of the Company (IPO). The
said amount shall be written-off as per the provisions of the Companies
Act, 1956.
iii) For the period of five years immediately preceding the date as at
which the Balance Sheet is prepared :
a) Aggregate number of shares alloted as fully paid-up pursuant to the
contracts without payment being received in cash is NIL
b) 1,48,86,678 equity shares were issued as bonus on 29th August, 2011
in the ratio of 3:1 and 41,10372 equity shares were issued as bonus on
26th March, 2011 inthe ratio of 9:1.
c) Aggregate number of shares bought back is NIL
Mar 31, 2011
A) Basis of Accounting
The financial statements are prepared under historical cost convention
on an accrual basis in accordance with the Generally Accepted
Accounting Principles (GAAP) in India, Accounting Standards (AS) as
notified under Companies (Accounting Standards) Rules, 2006 and the
requirements of the Companies Act, 1956.
b) Use of Estimates
The preparation and presentation of financial statements in accordance
with GAAP requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Differences between the actual results and
estimates are recognised prospectively in the period in which results
are known or materialised.
c) Fixed Assets
Fixed assets are stated at historical cost less accumulated
depreciation/amortization thereon and impairment losses, if any. Cost
includes all costs incidental to acquisition, installation,
commissioning and related internal costs and interest paid on funds
borrowed to finance the assets until the assets are ready for
commercial use.
Intangible Assets are recorded at acquisition cost and in case of
assets acquired on merger at their carrying values. Websites/ Brands
are recognised as Intangible Asset if it is expected that such assets
will generate future economic benefits and amortised over their useful
life not exceeding four/ten years or estimated useful life whichever is
lower.
d) Depreciation
Depreciation on fixed assets is provided on straight-line method at the
rates specified in Schedule XIV of the Companies Act, 1956.
Depreciation on addition to /deletions from fixed assets is provided on
pro-rata basis from / up to the date of such additions / deletions as
the case may be. Fixed assets individually costing Rs. 5000 or less are
fully depreciated in the year of acquisition.
e) Investments
Investments are classified into Current and Long Term Investments. Long
term investments (including joint ventures) are stated at cost, except
where there is a diminution in value other than temporary, in which
case requisite provision is made to write down the carrying value to
recognize such decline. Current investments are stated at cost.
f) Inventories
i. Projects in progress and movies under production are stated at cost.
Cost comprises the cost of materials, the cost of services, labour and
other expenses.
ii. Raw Stock, Digital Video Discs/Compact Discs stock are stated at
lower of cost or net realisable value.
iii. The copyrights are valued at a certain percentage of cost based on
the nature of rights. The Company evaluates the realisable value and/or
revenue potential of inventory based on management estimate of market
conditions and future demand and appropriate write down is made in
cases where accelerated write down is warranted.
iv. The borrowing cost directly attributable to a movie/game is
capitalised as part of the cost.
g) Revenue Recognition
i. Sales of ACDs / VCDs / DVDs /ACS are recognised when goods are
supplied and are recorded net of returns, trade discounts, rebates and
indirect taxes.
ii. The cost of drama covering the cost of purchase of copyrights and
shooting expenses is expensed out as a certain percentage of total
cost.
iii. Sales of rights are recognised on the date of entering into
agreement for the sale of the same, provided the Censor Certificate is
in existence.
iv. Services are recognized when the contractual commitments are
delivered in full and are recorded net of returns, trade discounts,
rebates and indirect taxes.
v. Revenues relating to complete Feature Films are recognised in the
year of release of feature films.
vi. Revenue pertaining to release of music of film is recognized on
the date of its release.
vii. Dividend income is recognised when the right to receive the same
is established.
viii. Interest Income is recognised on a time proportion basis.
h) Purchase of Rights
i. In respect of satellite rights, as per the terms and conditions of
the agreement with producer / seller, with respect to the date of
agreement of purchase and the existence of Censor Certificate.
r. In respect of other rights like Video and other rights on the
date of the agreement of purchase with producer /seller, provided the
Censor Certificate is in existence.
i) Employee Benefits
The company''s contributions to Employees Provident Fund, Employees''
Pension Fund and cost of other benefits are charged to Profit & Loss
Account on actual cost to the company on accrual basis each year.
Gratuity has been accounted on the basis of actuarial valuation and the
contribution thereof paid / payable is charged to the Profit & Loss
Account each year.
Leave encashment benefits have been accounted on the basis of actuarial
valuation done. The Projected Unit Credit Method as stipulated by AS-15
has been used to determine liability as on 31st March 2011.
j) Borrowing Cost
Borrowing Costs that are directly attributable to the acquisition of
qualifying assets are capitalized as a part of the cost of the
respective assets up to the date, when such asset is ready for its
intended use. Other borrowing costs are charged to the profit and loss
account in the year in which they are incurred except Bill Discounting
charges which has been carried forward on time proportion basis.
k) Foreign Currency Transaction
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of the transaction. Monetary
assets and liabilities denominated in foreign currency as at balance
sheet date are converted at the exchange rate prevailing on such date.
Exchange differences arising from such translation are recognized in
the Profit and Loss A/c.
I) Taxation
i. Current tax
Provision for Current Tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act,
1961.
ii. Deferred Tax
Deferred Tax is recognised on timing differences; being the difference
between the taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax assets subject to the consideration of prudence are
recognised and carried forward only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
However, where there is unabsorbed depreciation or carry forward losses
under taxation laws, deferred tax assets are recognized only if there
is virtual certainty of realisation of such assets. The tax effect is
calculated on the accumulated timing difference at the year end based
on the tax rates and laws enacted or substantially enacted on the
balance sheet date.
m) Earnings Per Share
Basic earnings per share are computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the net
profit after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
n) Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the Profit and Loss Account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
o) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of the
obligation can be made. Contingent liability is disclosed for (i)
Possible obligations which will be confirmed only by future events not
wholly within the control of the company or (ii) Present obligations
arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable
estimate of the amount of the obligation can not be made. Contingent
Assets are not recognised in the financial statements since this may
result in the recognition of income that may never be realised.
Remuneration Payable to Managing Director/Whole-time Director:
At 10% of Net Profit - Restricted to Rs. 1,69,79,662/- (Previous Year Rs.
28,20,395/-).
Since the company was Private Limited Company in the Previous Year
provisions of Section 198, 309 & 349 read with Schedule XIII, of the
Companies Act, 1956 are not applicable
m) The Cheques on Hand Rs. NIL (Previuos Year Rs. 109,109,000/-).
n) The Company has not received any information from the "suppliers"
regarding their status under the Micro Small and Medium Enterprises
Development Act, 2006 & hence disclosures, if any, relating to the
amounts as at year end together with interest paid/payable as required
under the said Act have not been given.
o) Custom duty and interest thereon aggregating Rs.1,04,24,082/-, is paid
under protest in the Financial Year Ended 31.03.2008. The same is
included in Advances Recoverable in Cash or Kind or for value to be
received.
p) An amount of Rs. 15,90,94,330/- to General Reserve Account and Rs.
21,99,63,108/- to Profit & Loss Account has been tranferred from
Capital Reserve Account, vide court order dated 25th Mrach, 2011. Bonus
shares of Rs. 4,10,13,720/- have been issued by capitalisation of Capital
Reserve Account.
q) With effect from 26th March, 2011 the Company was converted from a
Private Limited Company to a Limited Company.
Mar 31, 2010
A) Basis of Accounting
The financial statements are prepared under historical cost convention
on an accrual basis in accordance with the Generally Accepted
Accounting Principles (GAAP) in India, Accounting Standards (AS) as
notified under Companies (Accounting Standards) Rules, 2006 and the
requirements of the Companies Act, 1956.
b) Use f stimateEs
The preparation and presentation of financial statements in accordance
with GAAP requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Differences between the actual results and
estimates are recognised prospectively in the period in which results
are known or materialised.
c) Fixed Assets
Fixed assets are stated at historical cost less accumulated
depreciation/amortization thereon and impairment losses, if any. Cost
includes all costs incidental to acquisition, installation,
commissioning and related internal costs and interest paid on funds
borrowed to finance the assets until the assets are ready for
commercial use.
Intangible Assets are recorded at acquisition cost and in case of
assets acquired on merger at their carrying values. Websites/ Brands
are recognised as Intangible Asset if it is expected that such assets
will generate future economic benefits and amortised over their useful
life not exceeding four/ten years or estimated useful life whichever is
lower.
d) Depreciation
Depreciation on fixed assets is provided on straight-line method at the
rates specified in Schedule XIV of the Companies Act, 1956.
Depreciation on addition to /deletions from fixed assets is provided on
pro-rata basis from / up to the date of such additions / deletions as
the case may be. Fixed assets individually costing Rs. 5000 or less are
fully depreciated in the year of acquisition.
e) Investments
Investments are classified into Current and Long Term Investments. Long
term investments (including joint ventures) are stated at cost, except
where there is a diminution in value other than temporary, in which
case requisite provision is made to write down the carrying value to
recognize such decline. Current investments are stated at cost.
f) Inventories
i. Projects in progress and movies under production are stated at cost.
Cost comprises the cost of materials, the cost of services, labour and
other expenses.
ii. Raw Stock, Digital Video Discs/Compact Discs stock are stated at
lower of cost or net realisable value.
iii. The copyrights are valued at a certain percentage of cost based on
the nature of rights. The Company evaluates the realisable value and/or
revenue potential of inventory based on management estimate of market
conditions and future demand and appropriate write down is made in
cases where accelerated write down is warranted.
iv. The borrowing cost directly attributable to a movie/game is
capitalised as part of the cost.
g) Revenue Recognition
i. Sales of ACDs / VCDs / DVDs /ACS are recognised when goods are
supplied and are recorded net of returns, trade discounts, rebates and
indirect taxes.
ii. The cost of drama covering the cost of purchase of copyrights and
shooting expenses is expensed out as a certain percentage of total
cost.
iii. Sales of rights are recognised on the date of entering into
agreement for the sale of the same, provided the Censor Certificate is
in existence.
iv. Services are recognized when the contractual commitments are
delivered in full and are recorded net of returns, trade discounts,
rebates and indirect taxes.
v. Revenues relating to complete Feature Films are recognised in the
year of release of feature films.
vi. Revenue pertaining to release of music of film is recognized on
the date of its release.
vii. Dividend income is recognised when the right to receive the same
is established. viii. Interest Income is recognised on a time
proportion basis.
h) Purchase ightsof R
i. In respect of satellite rights, as per the terms and conditions of
the agreement with producer / seller, with respect to the date of
agreement of purchase and the existence of Censor Certificate.
ii. In respect of other rights like Video and other rights on the date
of the agreement of purchase with producer /seller, provided the Censor
Certificate is in existence.
i) Employee Benefits
The companyÂs contributions to Employees Provident Fund, Employees
Pension Fund and cost of other benefits are charged to Profit & Loss
Account on actual cost to the company on accrual basis each year.
Gratuity has been accounted on the basis of actuarial valuation done by
the Life Insurance Corporation of India and the contribution thereof
paid / payable is charged to the Profit & Loss Account each year.
Leave encashment benefits are being accounted on payment basis.
However, the said practice is not in accordance with Accounting
Standard 15 on "Employee Benefits" issued by the Institute of Chartered
Accountants of India.
j) Borrowing ost C
Borrowing Costs that are directly attributable to the acquisition of
qualifying assets are capitalized as a part of the cost of the
respective assets up to the date, when such asset is ready for its
intended use. Other borrowing costs are charged to the profit and loss
account in the year in which they are incurred except Bill Discounting
charges which has been carried forward on time proportion basis.
k) Foreign Currency Transaction
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of the transaction. Monetary
assets and liabilities denominated in foreign currency as at balance
sheet date are converted at the exchange rate prevailing on such date.
Exchange differences arising from such translation are recognized in
the Profit and Loss A/c.
l) Taxation
i. Current tax
Provision for Current Tax is made after taking into consideration
benefits admissable under the provisions of the Income Tax Act, 1961.
ii. Deferred Tax
Deferred Tax is recognised on timing differences; being the difference
between the taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax assets subject to the consideration of prudence are
recognised and carried forward only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
However, where there is unabsorbed depreciation or carry forward losses
under taxation laws, deferred tax assets are recognized only if there
is virtual certainty of realisation of such assets. The tax effect is
calculated on the accumulated timing difference at the year end based
on the tax rates and laws enacted or substantially enacted on the
balance sheet date.
m) Earnings per share
Basic earnings per share are computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the net
profit after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
n) Impairment Assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the Profit and Loss Account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
o) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of the
obligation can be made. Contingent liability is disclosed for (i)
Possible obligations which will be confirmed only by future events not
wholly within the control of the company or (ii) Present obligations
arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable
estimate of the amount of the obligation can not be made. Contingent
Assets are not recognised in the financial statements since this may
result in the recognition of income that may never be realised.
k) The amount of Rs. 109,109,000, shown as cheque in hand, was received
on 31-Mar-2010 and subsequently deposited and same was cleared on
05-Apr-2010.
l) Since the Company does not have any taxable profits for the current
financial year under the provisions of the Income Tax Act, 1961 it has
not made any provision for taxation for the current year.
m) The Company is in the process of compiling the data regarding dues
payable to suppliers falling under the Micro, Small and Medium
Enterprises Development Act, 2006. Hence, details required under the
provision of the Companies Act are not given.
n) Custom duty and interest thereon aggregating Rs.1,04,24,082, is paid
under protest in the Financial Year Ended 31.03.08. The same is
included in Advances Recoverable in Cash or Kind or for value to be
received.
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