A Oneindia Venture
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Accounting Policies of Tips Music Ltd. Company
Mar 31, 2025
1. GENERAL INFORMATION
Tips Music Limited (Formerly known as Tips Industries Limited) (the ''Company'') is a public limited company incorporated and domiciled in India. The Company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The address of its registered office is 601, Durga Chambers, Linking Road, Khar (West), Mumbai - 400 052.
The Company is engaged in the acquisition and exploitation of music rights. It has a widespread presence across leading global digital platforms, including YouTube, Spotify, JioSaavn, Apple Music, Resso, Amazon Prime Music, and others. The Company''s large and diversified music library comprises over 34,000 songs spanning all major genres and more than 25 languages, available to audiences worldwide
2. MATERIAL ACCOUNTING POLICIES
2.1 Statement of compliance
The financial statements have been prepared in accordance with the Indian Accounting Standards (herein after referred to as ''Ind AS'') including the Rules notified under the relevant provisions of Companies Act, 2013.
2.2 Basis of preparation and presentation
The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and / or disclosure purposes in
these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows:
⢠Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
⢠Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the assets or liability, either directly or indirectly; and
⢠Level 3 inputs are unobservable inputs for the asset or liability.
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and services and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve (12) months for the purpose of current or non-current classification of assets and liabilities.
The Company''s financial statements are presented in Indian Rupees (''), which is its functional currency and all values are rounded to the nearest lakhs.
2.3 Use of Estimates:
The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year.
The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.
Revenue is recognized when a customer obtains control and has the ability to direct the use of and obtain the benefits of products or services for the consideration that the company expects to be entitled to in exchange for those products and services.
The Company exercises judgment whether the revenue should be recognized "over time'' or ''at a point of time''. The company considers detailed understanding of customer contractual arrangements, transfer of control vis a vis transfer of risk and reward, acceptance of delivery i.e when control is transferred.
Revenue is recognized only to the extent that it is highly probable that the amount will not be subject to significant reversal when uncertainty relating to its recognition is resolved.
Revenue from Music rights where the customer obtains "right to use'' is recognized at the point of time the license is made available to the customer as per the terms of the agreement / contracts. Revenue from Music rights where the customer obtains "right to access" is recognized over the access period as per the terms of agreement/contracts.
Dividend income from investments is recognised when the shareholder''s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis by reference to the principal outstanding and the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that asset''s net carrying amount on initial recognition.
2.5 Leasing2.5.1 The Company as lessor
Leases under which the Company is a lessor are classified as finance or operating leases. Lease contracts where all the risks and rewards are substantially transferred to the lessee, the lease contracts are classified as finance leases. All other leases are classified as operating leases.
For leases under which the Company is an intermediate lessor, the Company accounts for the head-lease and the sub-lease as two separate contracts. The sub-lease is further classified either as a finance lease or an operating lease by reference to the right-to-use asset arising from the head-lease.
In respect of assets provided on finance leases, amounts due from lessees are recorded as receivables at the amount of the Company''s net investment in the leases. Finance lease income is allocated to accounting periods to reflect a constant periodic rate of return on the Company''s net investment outstanding in respect of the leases. In respect of assets given on operating lease, lease rentals are accounted in the Statement of Profit and Loss, on accrual basis in accordance with the respective lease agreements.
The Company enters into an arrangement for lease of buildings, plant and machinery including computer software. Such arrangements are generally for a fixed period but may have extension or termination options. The Company assesses, whether the contract is, or contains, a lease, at its inception. A contract is, or contains, a lease if the contract conveys the right to -
a) Control the use of an identified asset,
b) Obtain substantially all the economic benefits from use of the identified asset, and
c) Direct the use of the identified asset
The Company determines the lease term as the non-cancellable period of a lease, together with periods covered by an option to extend the lease, where the Company is reasonably certain to exercise that option.
The Company at the commencement of the lease contract recognizes a Right-to-Use asset at cost and corresponding lease liability, except for leases with term of less than twelve months (short term leases) and low-value assets. For these short term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease term.
The cost of the right-to-use asset comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the inception date of the lease, plus any initial direct costs, less any lease incentives received.
Subsequently, the right-to-use assets are measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-to-use assets are depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-to-use asset. The estimated useful life of right-to-use assets are determined on the same basis as those of property, plant and equipment.
The Company applies Ind AS 36 to determine whether a right-to-use asset is impaired and accounts for any identified impairment loss.
For lease liabilities at the commencement of the lease, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, if that rate is not readily determined, the lease payments are discounted using the incremental borrowing rate that the Company would have to pay to borrow funds, including the consideration of
factors such as the nature of the asset and location, collateral, market terms and conditions, as applicable in a similar economic environment. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.
The Company recognizes the amount of the re-measurement of lease liability as an adjustment to the right-to-use assets. Where the carrying amount of the right-to-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognizes any remaining amount of the re-measurement in statement of profit and loss.
Lease liability payments are classified as cash used in financing activities in the cash flow statement.
In preparing the financial statements, transactions in currencies other than the Company''s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
⢠exchange differences on foreign currency borrowings relating to assets under construction for further productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;
⢠exchange differences on transactions entered into in order to hedge certain foreign currency risks.
2.7 Employee benefits2.7.1 Retirement benefit costs and termination benefits
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.
For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuation being carried out at the end of each annual reporting period. Re-measurement, comprising actuarial gains and losses, is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Re-measurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.
Defined benefit costs are categorised as follows:
⢠Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
⢠Net interest expense or income; and
⢠Re-measurement
The Company presents the first two components of defined benefit costs in profit or loss in the line item ''Employee benefits expense''. Curtailment gains and losses are accounted for as past service costs.
A liability for termination benefit is recognised at the earlier of when the Company can no longer withdraw the offer of the termination benefit and when the Company recognises any related restructuring costs.
2.7.2 Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
Income tax expense represents the sum of current tax and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
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 tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary differences arises from the initial recognition of goodwill.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
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 the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
2.8.3 Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
2.9 Property, plant and equipment (PPE)
PPE are stated at cost of acquisition or construction. They are stated
at historical cost less accumulated depreciation and impairment
loss, if any. The cost comprises the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of PPE is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standards of performance. All other expenses on existing PPE, 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.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values using the straight-line method over their useful lives estimated by Management, which are similar to useful life prescribed under Schedule II of the Companies Act, 2013. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Cost of Leasehold improvements and Leasehold building is amortised over a period of lease.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
Property which is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as an investment property. Investment property is measured initially at its cost, including related transaction costs.
Though the Company measures investment property using cost-based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer applying a valuation model recommended by the International Valuation Standards Committee.
Subsequent expenditure is capitalized to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are expensed when incurred.
Depreciation on investment property is provided on a pro rata basis on a straight-line method over the estimated useful lives. Useful life of assets, as assessed by the Management, corresponds to those prescribed by Schedule II- Part ''C'' of the Companies Act, 2013.
Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in Statement of Profit and Loss in the period of derecognition.
2.11 Intangible assets2.11.1 Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful lives and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives are acquired separately are carried at cost less accumulated impairment losses.
Software is amortised on straight line basis over the estimated useful life of up to three years .
De-recognition of intangible assets
An intangible asset is de-recognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is de-recognised.
2.12 Impairment of tangible and intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest of the cash-generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
2.13 Provisions and Contingencies
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flow (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as if it is virtually certain that reimbursement will be received, and the amount of the receivable can be measured reliably.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements.
Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered to exist where the Company has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract.
Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
All regular way purchases of sales of financial assets are recognised or de-recognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
2.15.1 Classification of financial assets
Debt instruments that meet the following conditions are subsequently measured at amortised cost:
⢠the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
⢠the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
2.15.2 Effective interest method
The effective interest is a method of calculating the amortised cost of debt instruments and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where applicable, a shorter period, to the net carrying amount on initial recognition.
Income is recognised on an effective interest basis for debt instruments. Interest income is recognised in profit or loss and is included in the "Other income" line item.
2.15.3 Impairment of financial assets
The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.
Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects
to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) through the expected life of that financial instrument.
The Company measures the loss allowance for a financial instrument at an amount equal to lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses that represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.
If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model in the previous period but determines at the end of a reporting period that the credit risk has not increased significantly since initial recognition due to improvement in credit quality as compared to the previous period, the Company again measures the loss allowance based on 12 month expected credit losses.
When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make that assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information that is available without undue cost or effort, that is indicative of significant increase in credit risk since initial recognition.
For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.
Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.
2.15.4 De-recognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for the amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable is recognised in profit or loss on disposal of that financial asset.
2.15.5 Foreign exchange gains and losses
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period and the exchange differences are recognised in profit or loss.
2.16.1 Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement and the definitions of a financial liability and equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all its liabilities. Equity instruments issued by a Company are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company''s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments.
All financial liabilities are subsequently measured at amortised cost using the effective interest method.
2.16.3.1 Financial liabilities subsequently measured at amortised cost
The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is included in the ''Finance costs'' line item.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
2.16.3.2 Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by the Company are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:
⢠The amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
⢠The amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.
2.16.3.3 Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments and are recognised in ''Other income''.
2.16.3.4 De-recognition of financial liabilities
The Company de-recognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty
of a debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.
Financial assets and financial liabilities are off set and the net amount is presented when and only when, the Company has legally enforceable right to set off the amount it intends, either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
2.18 Cash and Cash equivalents
The Company''s cash and cash equivalents consists of cash on hand and in banks and demand deposits with banks, which can be withdrawn at any time, without prior notice or penalty on the principal.
For the purposes of cash flow statement, cash and cash equivalents comprise cash and cheques in hand, bank balances, demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand and considered part of the Company''s cash management system. In the balance sheet, bank overdrafts are presented under borrowings within current financial liabilities.
Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performances of the operating segments of the Company.
The Company presents basic and diluted earnings per share ("EPS") data for it''s equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity
shareholders of the Company by weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effect of all dilutive potential ordinary shares, which includes all stock options granted to employees.
Exceptional items refer to items of income or expenses within the statement of profit and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their disclosure is considered necessary to explain the performance of the Company.
2.22 Events after reporting date
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such event is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.
3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Company''s accounting policies, the management of the Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experiences and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
3.1 Taxation
The Company makes estimates in respect of tax liabilities and tax assets. Full provision is made for deferred and current taxation at the rates of tax prevailing at the year-end unless future rates have been substantively enacted. These calculations represent best estimate of the tax charge that will be incurred and recovered but actuals may differ from the estimates made and therefore affect future financial results. The effects would be recognised in the Statement of Profit and Loss.
Deferred tax assets arise in respect of unutilised losses and other timing differences to the extent that it is probable that future taxable profits will be available against which the asset can be utilised or to the extent they can be offset against related deferred tax liabilities. In assessing recoverability, estimation is made of the future forecasts of taxable profit, including for transactions expected to be consummated during the current year. If these forecast profits do not materialise, they change, or there are changes in tax rates or to the period over which the losses or timing differences might be recognised, then the value of deferred tax assets will need to be revised in a future period.
3.2 Depreciation and useful lives of property, plant and equipment and intangible assets
Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking into account their estimated residual value. Intangible assets are amortized over its estimated useful lives. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation/ amortization to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation/ amortization for future periods is adjusted if there are significant changes from previous estimates.
3.3 Expected credit losses on financial assets
The impairment provision of financial assets are based on assumption about risk of default and expected timing of collection. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s history of collections, customer''s creditworthiness, existing market condition as well as forward looking estimates at the end of each reporting period.
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgement to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.
3.5 Fair value measurements and valuation process
Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. Further, the Company has used valuation experts for the purpose of ascertaining fair value for certain assets and liabilities. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent that it is available. Where Level 1 inputs are not available, the Company engages third party qualified valuers to perform the valuation. The management works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model.
3.6 Defined benefit obligations
The costs of providing other post-employment benefits are charged to the Statement of Profit and Loss in accordance with Ind AS 19 "Employee benefits" over the period during which benefits is derived from the employees'' services and is determined based on valuation carried out by independent actuary. The costs are
determined based on assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to change in these assumptions.
Ind AS 116 defines a lease term as the non-cancellable period for which the lessee has the right-to-use an underlying asset including optional periods, when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. The Company considers all relevant facts and circumstances that create an economic incentive for the lessee to exercise the option when determining the lease term. The option to extend the lease term is included in the lease term, if it is reasonably certain that the lessee would exercise the option. The Company reassesses the option when significant events or changes in circumstances occur that are within the control of the lessee.
New accounting standards, amendments and interpretations adopted by the Company effective from 1 April 2024:
Ind AS 117 Insurance Contracts:
The Ministry of corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification dated 12 August 2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024, which is effective from annual reporting periods beginning on or after 1 April 2024.
Ind AS 117 Insurance Contracts is a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Ind AS 117 replaces Ind AS 104 Insurance Contracts. Ind AS 117 applies to all types of insurance contracts, regardless of the type of entities that issue them as well as to certain guarantees and financial instruments with discretionary participation features; a few scope exceptions will apply. Ind AS 117 is based on a general model, supplemented by:
a. A specific adaptation for contracts with direct participation features (the variable fee approach)
b. A simplified approach (the premium allocation approach) mainly for short-duration contracts
The application of Ind AS 117 had no impact on the financial statements as the Company had not entered any contracts in the nature of insurance contracts covered under Ind AS 117
Amendment to Ind AS 116 Leases - Lease Liability in a Sale and Leaseback
The MCA notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2024, which amend Ind AS 116, Leases, with respect to Lease Liability in a Sale and Leaseback.
The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains.
The amendment is effective for annual reporting periods beginning on or after 1 April 2024 and must be applied retrospectively to sale
and leaseback transactions entered into after the date of initial application of Ind AS 116.
The amendment does not have any material impact on the financial statements as the Company had not entered any sale and leaseback arrangement.
Standards issued but not yet effective
MCA has notified Companies (Indian Accounting Standards) Amendment Rules, 2025 making amendments to Ind AS 21, The Effects of Changes in Foreign Exchange Rates, w.r.t Lack of exchangeability'' w.e.f. 1 April 2025. These amendments require assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable and also requires specific disclosures viz. the nature and financial effects of the currency not being exchangeable, the spot exchange rates used, the estimation process, and the risks to which the entity is exposed because of the currency not being exchangeable. The amendment also lays down transition requirements, while specifically stating that an entity shall not restate comparative information in applying Lack of Exchangeability.
Mar 31, 2024
1] COMPANY BACKGROUND:
Tips Industries Limited is a Company limited by shares, incorporated and domiciled in India. The Company was incorporated on May 8, 1996 under Chapter IX of the Companies Act, 1956. The Company is engaged in the acquisition and exploitation Music of Rights. The Equity Shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited
2] SUMMARY OF MATERIAL ACCOUNTING POLICIES:
This note provides a list of the significant material accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
a) Basis of Preparation of financial statements:i) Compliance with Ind AS:
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as "Ind AS") notified under section 133 of the Companies Act, 2013, ("the act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 with effect from April 1, 2016. The financial statements were approved by the Company''s board of directors on 29th April 2024.
These financial statements are presented in Indian rupees (INR), which is the Company''s functional currency. All amounts have been rounded off to two decimal places to the nearest lakh, unless otherwise indicated.
ii) Historical cost convention:
The financial statements have been prepared on a historical cost basis, except for the following:
A) Certain financial assets and liabilities (including derivative instruments) that are measured at fair value.
B) Defined benefit plans assets measured at fair value
iii) Current/ Non- Current Classification:
Any asset or liability is classified as current if it satisfies any of the following conditions:
a) it is expected to be realised or settled or is intended for sale or consumption in the Company''s normal operating cycle;
b) it is expected to be realised or settled within twelve months from the reporting date;
c) it is held primarily for the purposes of being traded;
d) the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date;
e) in the case of a liability, the Company does not have an unconditional right to defer settlement of the liability for atleast twelve months from the reporting date.
All other assets and liabilities are classified as non- current.
For the purpose of current/ non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of assets or inventories for processing and their realisation in cash and cash equivalents.
b) Use of accounting estimates and judgments:
The preparation of financial statements in accordance with Ind AS requires use of estimates and assumptions for some items, which might have effect on their recognition and measurement in the balance sheet and statement of profit and loss. The actual amounts realised may differs from the estimates.
Such estimates are reviewed at each reporting period and impact if any is given in current and future periods. Estimates and assumptions are required in particular for:
i) Estimated useful life of property, plant and equipment:
Useful lives of tangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers'' warranties and maintenance support.
ii) Recoverability of deferred income tax assets:
In determining the recoverability of deferred income tax assets, the Company primarily considers current and expected profitability of applicable operating business segments and their ability to utilise any recorded tax assets. The Company reviews its deferred income tax assets at every reporting period end, taking into consideration the availability of sufficient current and projected taxable profits, reversals of taxable temporary differences and tax planning strategies.
iii) Measurement of defined benefit obligations and other employee benefit obligations:
The Company''s net obligation in respect of gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the other long-term employment benefits.
The present value of the obligation is determined based on actuarial valuation at the balance sheet date by an independent actuary using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures. The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
c) Property, Plant and equipment:Measurement at recognition
The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably and is measured at cost. Subsequent to recognition, all items of property, plant and equipment (except for freehold land) are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
The cost of property, plant and equipment comprises its purchase price plus any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of decommissioning, restoration and similar liabilities, if any. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Items such as spare parts, stand-by equipment and servicing that meets the definition of property, plant and equipment are capitalised at cost and depreciated over the useful life. Cost of repairs and maintenance are recognised in the statement of profit and loss as and when incurred.
Depreciation is provided on Straight Line Method, over the useful life of the assets as prescribed under Part C of Schedule II of the Companies Act, 2013 except for Improvements to Leasehold Premises.
Improvements to Leasehold Premises are amortized over the period of lease.
Depreciation on additions / deletions is calculated on a pro-rate basis from the date of addition / upto the date of deletion.
Capital work in progress and Capital advances
Assets under Capital Work in Progress includes the cost of property, plant and equipment that are not ready to use at the balance sheet date. Advances paid to acquire property, plant and equipment before the balance sheet date are disclosed under Other Non Current Assets. Assets under Capital Work in Progress are not depreciated as these assets are not yet available for use.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of an item of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognised in the statement of profit or loss in the period the asset is derecognised.
Properties that are held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that the future economic benefits
associated with the expenditure will flow to the Company and the cost of item can be measured reliably. All other repairs and maintenance costs are expensed out when incurred. Investment properties are depreciated using the straight-line method over their estimated useful life. Improvements to the leasehold premises are amortised over the period of lease.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
i) Non-derivative financial assets:Initial recognition and measurement
The Company recognises a financial asset in its balance sheet when it become party to the contractual provisions of the instrument. All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset.
Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognised as a gain or loss in the statement of profit and loss at initial recognition if the fair value is determined through quoted market price in an active market for an identical asset (i.e level 1 input) or through a valuation technique that uses data from observable markets (i.e level 2 input).
In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value and transaction price is deferred appropriately and recognised as a gain or loss in the statement of profit and loss only to the extent that such gain or loss arises due to a change in factor market participants take into account when pricing the financial asset.
However, trade receivables that do not contain a significant financing component are measured at transaction price irrespective of the fair value on initial recognition.
For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:
i) The Company''s business model for managing the financial asset and
ii) The contractual cash flow characteristics of the financial asset.
Based on the above criteria, the Company classifies its financial assets into the following categories:
i) Financial assets measured at amortised cost.
ii) Financial assets measured at fair value through profit and loss (FVTPL).
i) Financial assets measured at amortised cost:
A financial asset is measured at the amortised cost if both the conditions are met:
a) The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows.
b) 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.
This category applies to cash and bank balances, trade receivables, loans, deposits and other financial assets of the Company. Such financial assets are subsequently measured at amortised cost using the effective interest method. The amortised cost of a financial asset is also adjusted for loss allowance, if any.
ii) Financial assets measured at fair value through profit and loss (FVTPL):
A financial asset is measured at FVTPL unless it is measured at amortised cost or at Fair Value through Other Comprehensive Income (FVTOCI). This is a residual category applies to inventories, and other investments of the Company excluding investment in subsidiary. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognised in the statement of profit and loss.
A financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. On derecognition of a financial asset, the difference between the carrying amount and the consideration received is recognised in the statement of profit and loss.
Impairment of financial assets:
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, and bank balance.
b) Trade receivables - The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. Trade receivables are tested for impairment on a specific basis after considering the sanctioned credit limits, security like letters of credit, security deposit collected etc. and expectations about future cash flows.
Financial assets and liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
ii) Non-derivative financial liabilitiesInitial recognition and measurement
Financial liabilities are recognised initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are recognised initially at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liabilities.
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently carried at amortised cost; any difference between the initial carrying value and the redemption value is recognised in the statement of profit or loss over the period of the borrowings using the effective interest rate method. Other financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.
Non-derivative financial liabilities of the Company comprise long-term borrowings, short-term borrowings, bank overdrafts and trade and other payables.
Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest method. Derecognition:
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. When an existing financial liability is replaced from the same lender on substantially different terms, or terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid is recognised in the statement of profit and loss.
The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
i) in the principal market for the asset or liability or
ii) in the absence of a principal market, in the most advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy that categorises into three levels, as described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (level 3 inputs).
Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: inputs that are unobservable for the asset or liability
For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation at the end of each reporting period.
g) In house music production/ acquisition cost for Audio film and non film albums:-
In-house music production costs / acquisition cost is charged to revenue on release of albums/audio, considering the uncertainty of future economic benefits and the short duration over which such benefits may accrue
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with remaining maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.
i) Foreign Currency Transactions Initial Recognition:
All transactions that are not denominated in the Company''s functional currency are foreign currency transactions. These transactions are initially recorded in the functional currency by applying the appropriate daily rate which best approximates the actual rate of the transaction. Exchange differences arising on foreign exchange transactions settled during the period/ year are recognised in the statement of profit and loss.
Measurement of foreign current items at reporting date:
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rate of exchange at the reporting date. Non-monetary items measured based on historical cost in a foreign currency are not translated. Non-monetary items measured at fair value in a foreign currency are translated to the functional currency using the exchange rates at the date when the fair value was determined.
Exchange differences arising out of these translations are recognised in the statement of profit and loss.
Revenue is recognized when a customer obtains control and has the ability to direct the use of and obtain the benefits of products or services for the consideration that the company expects to be entitled to in exchange for those products and services.
The Company exercises judgment whether the revenue should be recognized "over time'' or ''at a point of time''. The company considers detailed understanding of customer contractual arrangements, transfer of control vis a vis transfer of risk and reward, acceptance of delivery i.e when control is transferred.
Revenue is recognized only to the extent that it is highly probable that the amount will not be subject to significant reversal when uncertainty relating to its recognition is resolved.
The specific recognition criteria described below must also be met before revenue is recognized:
i) Royalty from Music Rights: Revenue from Music rights where the customer obtains "right to use'' is recognized at the point of time the license is made available to the customer as per the terms of the agreement / contracts. Revenue from Music rights where the customer obtains "right to access" is recognized over the access period as per the terms of agreement/contracts.
ii) Interest Income: Interest income is accounted on accrual basis, at the contracted terms.
iii) Others: Revenue in respect of Insurance/Other claims is recognized only when it is reasonably certain that the ultimate collection is made.
k) Employee Benefits:i) Short-term obligations:
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related services are recognised in respect of employees services up to the end of the reporting period and are measured at the amount expected to be paid when liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
ii) Other long term employee benefit obligations:Gratuity obligations:
The liability or asset recognised in the balance sheet in respect of defined benefits and gratuity plans is the present value of the defined benefits obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in acturaial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost
The company pays provident fund contributions to publicly administered provident funds as per local regulations. The company has no further payment obligations once the contribution have been paid. The contributions are accounted for as defined contribution plans and the contribution are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
The company recognises a liability and an expense for bonuses. The company recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
Income tax expense comprises current and deferred tax. It is recognised in the statement of profit and loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year/period as per the provisions of tax laws enacted in India and any adjustment to the tax payable or receivable in respect of previous years/periods. It is measured using tax rates enacted or substantively enacted at the reporting date.
Current tax assets and liabilities are offset only if, the Company has a legally enforceable right to set off the recognised amounts; and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Deferred tax is recognised on deductible temporary differences between the carrying amounts of assets and liabilities in the balance
sheet and the corresponding tax bases used in the computation of taxable income, the carry forward of unused tax losses and the carry forward of unused tax credits.
Deferred tax assets and liabilities 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.
Deferred tax liabilities are generally recognized for all deductible temporary differences. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognised. Also, for temporary differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognised.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable income will be available against which those deductible temporary differences can be utilised. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction that affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognised.
The Company reviews the carrying amount of deferred tax assets at the end of each reporting period and reduce amounts to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered.
Presentation of current and deferred tax:
Current and deferred tax are recognised as income or an expense in the statement of profit and loss, except when they relate to items that are recognised in Other Comprehensive Income/ Equity, in which case, the current and deferred tax income/ expense are recognised in Other Comprehensive Income/ Equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current income tax assets against current income tax liabilities and when they relate to income taxes levied by the same taxation authority.
The basic earnings per share (''EPS'') is computed by dividing the net profit attributable to equity shareholders for the period, by the weighted average number of equity shares outstanding during the period.
Diluted EPS is computed using the weighted average number of equity and dilutive (potential) equity equivalent shares outstanding during the period except where the results would be anti-dilutive.
n) Provisions and Contingencies
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is more likely than not that an outflow of economic benefits will be required to settle the obligation. Provisions are discounted where the effect of discounting is material at a pre-tax rate that reflects current market assessments of the time value of money. Unwinding of the discount (accretion) is recognized as a finance cost. Discount rates are assessed and projected timing of future obligations each reporting period.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
o) Investment and other financial assets:i) Classification:
The company classifies its financial assets in the following measurement categories:
a) those to be measured subsequently at fair value (either through other comprehensive income,or through profit or loss),and
b) those measured at amortised cost
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income.
At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
p) Leases:
As a Lessee:
The company recognizes a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost. Cost comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, any initial direct costs incurred by the lessee, an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.
After the commencement date, a lessee shall measure the right-of-use asset applying cost model, which is Cost less any accumulated depreciation and any accumulated impairment losses and also adjusted for certain re-measurements of the lease liability.
Right-of-use asset is depreciated using straight-line method from the commencement date to the end of the lease term. If the lease transfers the ownership of the underlying asset to the company at the end of the lease term or the cost of the right-of-use asset reflects the company will exercise the purchase option, ROU will be depreciated over the useful life of the underlying asset, which is determined based on the same basis as property, plant and equipment.
Lease liability is initially measured at the present value of lease payments that are not paid at the commencement date. Discounting is done using the implicit interest rate in the lease, if that rate cannot be readily determined, then using the company''s incremental borrowing rate. Incremental borrowing rate is determined based on entity''s borrowing rate adjusted for terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprises of fixed payments (including in substance fixed payments), variable lease payments that depends on an index or a rate, initially measured using the index or rate at the commencement date, amount expected to be payable under a residual value guarantee, the exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.
Lease liability is measured at amortised cost using the effective interest method. Lease liability is re-measured when there is a change in the lease term, a change in its assessment of whether it will exercise a purchase, extension or termination option or a revised in-substance fixed lease payment, a change in the amounts expected to be payable under a residual value guarantee and a change in future lease payments arising from change in an index or rate.
When the lease liability is re-measured corresponding adjustment is made to the carrying amount of the right-of-use asset. If the carrying amount of the right-of-use asset has been reduced to zero it will be recorded in statement of profit and loss.
Right-of-use asset is presented under "Property, Plant & Equipment" and lease liabilities are presented under "Financial liabilities" in the balance sheet.
The company has elected not to recognise right-of-use assets and lease liabilities for short term leases. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term.
As a Lessor: Lease income from operating leases where the Company is a lessor is recognised as income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.
q) Impairment of non-financial assets:
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (cash-generating units).
Mar 31, 2023
Summary of Significant Accounting Policies:
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
a) Basis of Preparation of financial statements:
i) Compliance with Ind AS:
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as "Ind ASâ) notified under section 133 of the Companies Act, 2013, ("the actâ) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 with effect from April 1, 2016. The financial statements were approved by the Company''s board of directors on May 12,2023.
These financial statements are presented in Indian rupees (INR), which is the Company''s functional currency. All amounts have been rounded off to two decimal places to the nearest lakh, unless otherwise indicated.
ii) Historical cost convention:
The financial statements have been prepared on a historical cost basis, except for the following:
A) Certain financial assets and liabilities (including derivative instruments) that are measured at fair value.
B) Defined benefit plans assets measured at fair value.
iii) Current/ Non- Current Classification:
Any asset or liability is classified as current if it satisfies any of the following conditions:
a) it is expected to be realised or settled or is intended for sale or consumption in the Company''s normal operating cycle;
b) it is expected to be realised or settled within twelve months from the reporting date;
c) it is held primarily for the purposes of being traded;
d) the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date;
e) in the case of a liability, the Company does not have an unconditional right to defer settlement of the liability for atleast twelve months from the reporting date.
All other assets and liabilities are classified as non- current.
For the purpose of current/ non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of assets or inventories for processing and their realisation in cash and cash equivalents.
b) Use of accounting estimates and judgments:
The preparation of financial statements in accordance with Ind AS requires use of estimates and assumptions for some items, which might have effect on their recognition and measurement in the balance sheet and statement of profit and loss. The actual amounts realised may differs from the estimates.
Such estimates are reviewed at each reporting period and impact if any is given in current and future periods. Estimates and assumptions are required in particular for:
i) Estimated useful life of property, plant and equipment:
Useful lives of tangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers'' warranties and maintenance support.
ii) Recoverability of deferred income tax assets:
In determining the recoverability of deferred income tax assets, the Company primarily considers current and expected profitability of applicable operating business segments and their ability to utilise any recorded tax assets. The Company reviews its deferred income tax assets at every reporting period end, taking into consideration the availability of sufficient current and projected taxable profits, reversals of taxable temporary differences and tax planning strategies.
iii) Measurement of defined benefit obligations and other employee benefit obligations:
The Company''s net obligation in respect of gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the other long-term employment benefits.
The present value of the obligation is determined based on actuarial valuation at the balance sheet date by an independent actuary using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures. The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
c) Property, Plant and equipment:
Measurement at recognition
The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably and is measured at cost. Subsequent to recognition, all items of property, plant and equipment (except for freehold land) are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
The cost of property, plant and equipment comprises its purchase price plus any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of decommissioning, restoration and similar liabilities, if any. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Items such as spare parts, stand-by equipment and servicing that meets the definition of property, plant and equipment are capitalised at cost and depreciated over the useful life. Cost of repairs and maintenance are recognised in the statement of profit and loss as and when incurred.
Depreciation:
Depreciation is provided on Straight Line Method, over the useful life of the assets as prescribed under Part C of Schedule II of the Companies Act, 2013 except for Improvements to Leasehold Premises.
Improvements to Leasehold Premises are amortized over the period of lease.
Depreciation on additions / deletions is calculated on a pro-rate basis from the date of addition / upto the date of deletion.
Capital work in progress and Capital advances
Assets under Capital Work in Progress includes the cost of property, plant and equipment that are not ready to use at the balance sheet date. Advances paid to acquire property, plant and equipment before the balance sheet date are disclosed under Other Non Current Assets. Assets under Capital Work in Progress are not depreciated as these assets are not yet available for use.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of an item of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognised in the statement of profit or loss in the period the asset is derecognised.
d) Investment properties
Properties that are held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of item can be measured reliably. All other repairs and
maintenance costs are expensed out when incurred. Investment properties are depreciated using the straight-line method over their estimated useful life. Improvements to the leasehold premises are amortised over the period of lease.
e) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
i) Non-derivative financial assets:
Initial recognition and measurement
The Company recognises a financial asset in its balance sheet when it become party to the contractual provisions of the instrument. All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset.
Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognised as a gain or loss in the statement of profit and loss at initial recognition if the fair value is determined through quoted market price in an active market for an identical asset (i.e level 1 input) or through a valuation technique that uses data from observable markets (i.e level 2 input).
In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value and transaction price is deferred appropriately and recognised as a gain or loss in the statement of profit and loss only to the extent that such gain or loss arises due to a change in factor market participants take into account when pricing the financial asset.
However, trade receivables that do not contain a significant financing component are measured at transaction price irrespective of the fair value on initial recognition.
Subsequent measurement:
For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:
i) The Company''s business model for managing the financial asset and
ii) The contractual cash flow characteristics of the financial asset.
Based on the above criteria, the Company classifies its financial assets into the following categories:
i) Financial assets measured at amortised cost.
ii) Financial assets measured at fair value through profit and loss (FVTPL).
i) Financial assets measured at amortised cost:
A financial asset is measured at the amortised cost if both the conditions are met:
a) The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows.
b) 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.
This category applies to cash and bank balances, trade receivables, loans, deposits and other financial assets of the Company. Such financial assets are subsequently measured at amortised cost using the effective interest method. The amortised cost of a financial asset is also adjusted for loss allowance, if any.
ii) Financial assets measured at fair value through profit and loss (FVTPL):
A financial asset is measured at FVTPL unless it is measured at amortised cost or at Fair Value through Other Comprehensive Income (FVTOCI). This is a residual category applies to inventories, and other investments of the Company excluding investment in subsidiary. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognised in the statement of profit and loss.
Derecognition:
A financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. On derecognition of a financial asset, the difference between the carrying amount and the consideration received is recognised in the statement of profit and loss.
Impairment of financial assets:
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, and bank balance.
b) Trade receivables - The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. Trade receivables are tested for impairment on a specific basis after considering the sanctioned credit limits, security like letters of credit, security deposit collected etc. and expectations about future cash flows.
Presentation:
Financial assets and liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
ii) Non-derivative financial liabilities Initial recognition and measurement
Financial liabilities are recognised initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are recognised initially at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liabilities.
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently carried at amortised cost; any difference between the initial carrying value and the redemption value is recognised in the statement of profit or loss over the period of the borrowings using the effective interest rate method. Other financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.
Non-derivative financial liabilities of the Company comprise long-term borrowings, short-term borrowings, bank overdrafts and trade and other payables.
Subsequent measurement:
Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest method. Derecognition:
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. When an existing financial liability is replaced from the same lender on substantially different terms, or terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid is recognised in the statement of profit and loss.
f) Fair Value
The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
i) in the principal market for the asset or liability or
ii) in the absence of a principal market, in the most advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy that categorises into three levels, as described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (level 3 inputs).
Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: inputs that are unobservable for the asset or liability.
For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation at the end of each reporting period.
g) In house music production/ acquisition cost for Audio film and non film albums:-
In-house music production costs / acquisition cost is charged to revenue on release of albums/audio, considering the uncertainty of future economic benefits and the short duration over which such benefits may accrue.
h) Cash and cash equivalents:
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with remaining maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.
i) Foreign Currency Transactions
Initial Recognition:
All transactions that are not denominated in the Company''s functional currency are foreign currency transactions. These transactions are initially recorded in the functional currency by applying the appropriate daily rate which best approximates the actual rate of the transaction. Exchange differences arising on foreign exchange transactions settled during the period/ year are recognised in the statement of profit and loss.
Measurement of foreign current items at reporting date:
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rate of exchange at the reporting date. Non-monetary items measured based on historical cost in a foreign currency are not translated. Non-monetary items measured at fair value in a foreign currency are translated to the functional currency using the exchange rates at the date when the fair value was determined.
Exchange differences arising out of these translations are recognised in the statement of profit and loss.
j) Revenue recognition:
Revenue is recognized when a customer obtains control and has the ability to direct the use of and obtain the benefits of products or services for the consideration that the company expects to be entitled to in exchange for those products and services.
The Company exercises judgment whether the revenue should be recognized "over time'' or ''at a point of time''. The company considers detailed understanding of customer contractual arrangements, transfer of control vis a vis transfer of risk and reward, acceptance of delivery i.e when control is transferred.
Revenue is recognized only to the extent that it is highly probable that the amount will not be subject to significant reversal when uncertainty relating to its recognition is resolved.
The specific recognition criteria described below must also be met before revenue is recognized:
i) Royalty from Music Rights: Revenue from Music rights where the customer obtains "right to use'' is recognized at the point of time the license is made available to the customer as per the terms of the agreement / contracts. Revenue from Music rights where the customer obtains "right to accessâ is recognized over the access period as per the terms of agreement/contracts.
ii) Interest Income: Interest income is accounted on accrual basis, at the contracted terms.
iii) Others: Revenue in respect of Insurance/Other claims is recognized only when it is reasonably certain that the ultimate collection is made.
k) Employee Benefits:
i) Short-term obligations:
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related services are recognised in respect of employees services up to the end of the reporting period and are measured at the amount expected to be paid when liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
ii) Other long term employee benefit obligations:
Gratuity obligations:
The liability or asset recognised in the balance sheet in respect of defined benefits and gratuity plans is the present value of the defined benefits obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.
Defined Contribution plans:
The company pays provident fund contributions to publicly administered provident funds as per local regulations. The company has no further payment obligations once the contribution have been paid. The contributions are accounted for as defined contribution plans and the contribution are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
iii) Bonus Plan:
The company recognises a liability and an expense for bonuses. The company recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
l) Taxes on Income:
Income tax expense comprises current and deferred tax. It is recognised in the statement of profit and loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
i) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year/period as per the provisions of tax laws enacted in India and any adjustment to the tax payable or receivable in respect of previous years/periods. It is measured using tax rates enacted or substantively enacted at the reporting date.
Current tax assets and liabilities are offset only if, the Company has a legally enforceable right to set off the recognised amounts; and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
ii) Deferred tax:
Deferred tax is recognised on deductible temporary differences between the carrying amounts of assets and liabilities in the balance sheet and the corresponding tax bases used in the computation of taxable income, the carry forward of unused tax losses and the carry forward of unused tax credits.
Deferred tax assets and liabilities 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.
Deferred tax liabilities are generally recognized for all deductible temporary differences. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognised. Also, for temporary differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognised.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable income will be available against which those deductible temporary differences can be utilised. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction that affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognised.
The Company reviews the carrying amount of deferred tax assets at the end of each reporting period and reduce amounts to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered.
Presentation of current and deferred tax:
Current and deferred tax are recognised as income or an expense in the statement of profit and loss, except when they relate to items that are recognised in Other Comprehensive Income/ Equity, in which case, the current and deferred tax income/ expense are recognised in Other Comprehensive Income/ Equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current income tax assets against current income tax liabilities and when they relate to income taxes levied by the same taxation authority.
m) Earnings per share:
The basic earnings per share (''EPS'') is computed by dividing the net profit attributable to equity shareholders for the period, by the weighted average number of equity shares outstanding during the period.
Diluted EPS is computed using the weighted average number of equity and dilutive (potential) equity equivalent shares outstanding during the period except where the results would be anti-dilutive.
n) Provisions and Contingencies
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is more likely than not that an outflow of economic benefits will be required to settle the obligation. Provisions are discounted where the effect of discounting is material at a pre-tax rate that reflects current market assessments of the time value of money. Unwinding of the discount (accretion) is recognized as a finance cost. Discount rates are assessed and projected timing of future obligations each reporting period.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
o) Investment and other financial assets: i) Classification:
The company classifies its financial assets in the following measurement categories:
a) those to be measured subsequently at fair value (either through other comprehensive income,or through profit or loss),and
b) those measured at amortised cost
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. ii) Measurement:
At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
p) Leases:
As a Lessee:
The company recognizes a right-of-use asset and a lease liability at the lease commencement date.
Right-of-use asset (ROU):
The right-of-use asset is initially measured at cost. Cost comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, any initial direct costs incurred by the lessee, an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.
After the commencement date, a lessee shall measure the right-of-use asset applying cost model, which is Cost less any accumulated depreciation and any accumulated impairment losses and also adjusted for certain re-measurements of the lease liability.
Right-of-use asset is depreciated using straight-line method from the commencement date to the end of the lease term. If the lease transfers the ownership of the underlying asset to the company at the end of the lease term or the cost of the right-of-use asset reflects the company will exercise the purchase option, ROU will be depreciated over the useful life of the underlying asset, which is determined based on the same basis as property, plant and equipment.
Lease liability:
Lease liability is initially measured at the present value of lease payments that are not paid at the commencement date. Discounting is done using the implicit interest rate in the lease, if that rate cannot be readily determined, then using the company''s incremental borrowing rate. Incremental borrowing rate is determined based on entity''s borrowing rate adjusted for terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprises of fixed payments (including in substance fixed payments), variable lease payments that depends on an index or a rate, initially measured using the index or rate at the commencement date, amount expected to be payable under a residual value guarantee, the exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.
Lease liability is measured at amortised cost using the effective interest method. Lease liability is re-measured when there is a change in the lease term, a change in its assessment of whether it will exercise a purchase, extension or termination option or a revised in-substance
fixed lease payment, a change in the amounts expected to be payable under a residual value guarantee and a change in future lease payments arising from change in an index or rate.
When the lease liability is re-measured corresponding adjustment is made to the carrying amount of the right-of-use asset. If the carrying amount of the right-of-use asset has been reduced to zero it will be recorded in statement of profit and loss.
Right-of-use asset is presented under "Property, Plant & Equipmentâ and lease liabilities are presented under "Financial liabilitiesâ in the balance sheet.
The company has elected not to recognise right-of-use assets and lease liabilities for short term leases. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term.
As a Lessor: Lease income from operating leases where the Company is a lessor is recognised as income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.
q) Impairment of non-financial assets:
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (cash-generating units).
r) Borrowing costs:
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred, unless they are capitalised.
Mar 31, 2018
1. Company Background:
Tips Industries Limited is a Company limited by shares, incorporated and domiciled in India. The Company was incorporated on May 8, 1996 under Chapter IX of the Companies Act, 1956. The Company is engaged in the business of Production and Distribution of motion Pictures and acquisition and exploitation of Music Rights. The Equity Shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited.
2. Summary of Significant Accounting Policies:
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
a) Basis of Preparation:
i) Compliance with Ind As:
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as "Ind AS") notified under section 133 of the Companies Act, 2013, (" the Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 with effect from April 1, 2016. Previous year numbers in the financial statements have been restated to Ind AS. In accordance with Ind AS 101 First-time Adoption of Indian Accounting Standard, the Company has presented a reconciliation from the presentation of financial statements under Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAP") to Ind AS of Shareholders'' equity as at March 31, 2017 and April 1, 2016 and of total comprehensive income for the year ended March 31, 2017. Reconciliations and descriptions of the effect of the transition has been summarized in Note 34(18).
The financial statements are presented in Indian Rupees (INR), except when otherwise indicated.
These financial statements are the first financial statements of the company under Ind AS.
ii) Historical cost convention:
The financial statements have been prepared on a historical cost basis, except for the following:
A) Certain financial assets and liabilities (including derivative instruments)
B) Defined benefit plans assets measured at fair value
iii) Current/ Non- Current Classification:
Any asset or liability is classified as current if it satisfies any of the following conditions:
a) it is expected to be realized or settled or is intended for sale or consumption in the Company''s normal operating cycle;
b) it is expected to be realized or settled within twelve months from the reporting date;
c) it is held primarily for the purposes of being traded;
d) the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date;
e) in the case of a liability, the Company does not have an unconditional right to defer settlement of the liability for at least twelve months from the reporting date.
All other assets and liabilities are classified as non- current.
For the purpose of current/ non-current classification of assets and liabilities, the Company has ascertained
ii) Recoverability of deferred income tax assets:
In determining the recoverability of deferred income tax assets, the Company primarily considers current and expected profitability of applicable operating business segments and their ability to utilize any recorded tax assets. The Company reviews its deferred income tax assets at every reporting period end, taking into consideration the availability of sufficient current and projected taxable profits, reversals of taxable temporary differences and tax planning strategies.
iii) Measurement of defined benefit obligations and other employee benefit obligations:
The Company''s net obligation in respect of gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as a liability at the present value of the other long-term employment benefits.
The present value of the obligation is determined based on actuarial valuation at the balance sheet date by an Independent actuary using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures. The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date. its normal operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.
b) Use of accounting estimates and judgments:
Preparation of financial statements requires the Company to make assumptions and estimates about future events and apply significant judgments. The Company base its assumptions, estimates and judgments on historical experience, current trends and all available information that it believes is relevant at the time of preparation of the financial statements. However, future events and their effects cannot be determined with certainty. Accordingly, as confirming events occur, actual results could ultimately differ from our assumptions and estimates. Such differences could be material. The following require most difficult, subjective or complex judgments, resulting from the need to make estimates about the effect of matters that are inherently uncertain.
i) Estimated useful life of property, plant and equipment:
The Company estimates the useful life of property, plant and equipment based on the period over which the assets are expected to be available for use. The estimation of the useful life of property, plant and equipment is based on collective assessment of industry practice, internal technical evaluation and on the historical experience with similar assets. It is possible, however, that future results from operations could be materially affected by changes in estimates brought about by changes in factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. The estimated useful life are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the assets.
The cost of property, plant and equipment comprises its purchase price plus any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of decommissioning, restoration and similar liabilities, if any. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Items such as spare parts, stand-by equipment and servicing that meets the definition of property, plant and equipment are capitalized at cost and depreciated over the useful life. Cost of repairs and maintenance are recognized in the statement of profit and loss as and when incurred.
Depreciation:
Depreciation is provided on Straight Line Method, prorate to the period of use, in terms of Section 123(2) of the Companies Act, 2013 in the manner specified in Schedule II of the Companies Act, 2013 except for Improvements to Leasehold Premises.
Improvements to Leasehold Premises are amortized over the period of lease.
Capital work in progress and Capital advances
Assets under Capital Work in Progress includes the cost of property, plant and equipment that are not ready to use at the balance sheet date. Advances paid to acquire property, plant and equipment before the balance sheet date are disclosed under Other Non-Current Assets. Assets under Capital Work in Progress are not depreciated as these assets are not yet available for use.
Derecognition
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on
c) Segment Reporting:
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker is responsible for allocating resources and assessing performance of the operating segments and has been identified as the Chief Financial Officer of the Group.
The Group''s Chief Operating Decision Maker (''CODM'') examines the performance and has identified two reportable segments of its business.
- Music (Audio/ Video)
- Film Production/ distribution
The segment performance is evaluated based on profit or loss. Also the Company''s borrowings (including finance costs and interest income), income taxes and investments are managed at head office and are not allocated to operating segments.
Segment Revenue is measured in the same way as in the Statement of Profit and Loss. Segment assets and liabilities are measured in the same way as in the financial statements. These assets are allocated based on the operations of the segment.
d) Property, Plant and equipment:
Measurement at recognition
The cost of an item of property, plant and equipment is recognized as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably and is measured at cost. Subsequent to recognition, all items of property, plant and equipment (except for freehold land) are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
Improvements to the leasehold premises are amortized over the period of lease.
g) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
i) Non-derivative financial assets:
Initial recognition and measurement
The Company recognizes a financial asset in its balance sheet when it became party to the contractual provisions of the instrument. All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset.
Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the statement of profit and loss at initial recognition if the fair value is determined through quoted market price in an active market for an identical asset (i.e level 1 input) or through a valuation technique that uses data from observable markets (i.e level 2 input).
However, trade receivables that do not contain a significant financing component are measured at transaction price irrespective of the fair value on initial recognition.
Subsequent measurement:
For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:
i) The Company''s business model for managing the financial asset and
DE recognition of an item of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognized in the statement of profit or loss in the period the asset is derecognized.
e) Intangible assets:
Measurement at recognition:
Intangible assets comprise primarily of computer software. Intangible assets are initially recorded at cost and subsequent to recognition, intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any.
Amortization:
The Computer Software is amortized over a period of 3 years
Derecognition:
An item of intangible asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of an item of intangible asset is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognized in the statement of profit or loss in the period the asset is derecognized.
f) Investment properties
Properties that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalized to the asset''s carrying amount only when it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of item can be measured reliably. All other repairs and maintenance costs are expensed out when incurred. Investment properties are depreciated using the straight-line method over their estimated useful life. share based payments and other investments of the Company excluding investment in subsidiary. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognized in the statement of profit and loss.
Derecognition:
A financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. On derecognition of a financial asset, the difference between the carrying amount and the consideration received is recognized in the statement of profit and loss.
Presentation:
Financial assets and liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
ii) Non-derivative financial liabilities Initial recognition and measurement
Financial liabilities are recognized initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are recognized initially at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liabilities.
Borrowings are recognized initially at fair value, net of transaction costs incurred, and subsequently carried at amortized cost; any difference between the initial carrying value and the redemption value is recognized
ii) The contractual cash flow characteristics of the financial asset.
Based on the above criteria, the Company classifies its financial assets into the following categories:
i) Financial assets measured at amortized cost.
ii) Financial assets measured at fair value through profit and loss (FVTPL).
1) Financial assets measured at amortized cost:
A financial asset is measured at the amortized cost if both the conditions are met:
a) The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows.
b) 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.
This category applies to cash and bank balances, trade receivables, loans, deposits and other financial assets of the Company. Such financial assets are subsequently measured at amortized cost using the effective interest method.
The amortized cost of a financial asset is also adjusted for loss allowance, if any.
2) Financial assets measured at fair value through profit and loss (FVTPL):
A financial asset is measured at FVTPL unless it is measured at amortized cost or at Fair Value through Other Comprehensive Income (FVTOCI). This is a residual category applies to inventories,
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, as described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (level 3 inputs).
Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3: inputs that are unobservable for the asset or liability
For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period.
i) Inventories:
Items of inventory are valued on the basis as given below:
i) Cost of Feature Films:
- The Company amortizes 60% of the cost of movie rights acquired or produced by it, on first theatrical release of the movie. The said amortization is made proportionately based on Management''s estimates of revenues pertaining to Domestic Theatrical Rights, International Theatrical Rights, Television Rights, Video Rights and others over a period of 12 months from the date of theatrical release of the movie.
- Balance 40% of COP is amortized as per the management estimate / review of future revenues
in the statement of profit or loss over the period of the borrowings using the effective interest rate method. Other financial liabilities are recognized initially at fair value plus any directly attributable transaction costs.
Non-derivative financial liabilities of the Company comprise long-term borrowings, short-term borrowings, bank overdrafts and trade and other payables.
Subsequent measurement:
Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method.
Derecognition:
The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expired. When an existing financial liability is replaced from the same lender on substantially different terms, or terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid is recognized in the statement of profit and loss.
h) Fair Value
The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
i) in the principal market for the asset or liability or
ii) in the absence of a principal market, in the most advantageous market for the asset or liability.
approximates the actual rate of the transaction. Exchange differences arising on foreign exchange transactions settled during the period/ year are recognized in the statement of profit and loss.
Measurement of foreign current items at reporting date:
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rate of exchange at the reporting date. Non-monetary items measured based on historical cost in a foreign currency are not translated. Non-monetary items measured at fair value in a foreign currency are translated to the functional currency using the exchange rates at the date when the fair value was determined.
Exchange differences arising out of these translations are recognized in the statement of profit and loss.
l) Revenue recognition: i) Turnover:
Audio Rights Receipts
Revenue from sale of Audio Rights is recognized on transfer / Assignment / Delivery of the masters as per the terms of the Contracts / Agreements with the parties.
Royalty from Music Rights:
Royalty is recognized only when it is reasonably certain that the ultimate collection will be made and / or is also recognized on consideration due as per the term of agreement with respect to parties.
Revenue from films:
Income from production of films is recognized in the statement of Profit and Loss on release of films as per the contracts / arrangements with distributors. Revenue from distribution of motion pictures is recognized based on ticket sales on exhibition of motion pictures at exhibition theatres. Recoveries but not exceeding nine years and subject to a minimum of 4.4% in any year.
ii) Cost of under Production Films:
Expenses of under production films incurred till the films are ready for release are inventoried.
The production of films requires various types of materials in different qualities and quantities. Considering the peculiar nature of those items including their multiplicity and complexity, it is not practicable to maintain quantitative records of those items. Further, in the absence of certainty of reusability of such items, the same are not valued.
iii) The Company reassesses the realizable value and / or revenue potential of inventory based on market condition and future demand and appropriate write down is made in cases where accelerated write down is warranted.
j) Statement of cash flows:
The Company''s statement of cash flows are prepared using the Indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature if any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
Cash and cash equivalents comprise cash and bank balances.
k) Foreign Currency Transactions Initial Recognition:
All transactions that are not denominated in the Company''s functional currency are foreign currency transactions. These transactions are initially recorded in the functional currency by applying the appropriate daily rate which best are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
ii) Other long term employee benefit obligations: Gratuity obligations:
The liability or asset recognized in the balance sheet in respect of defined benefits pension and gratuity plans is the present value of the defined benefits obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost
Defined Contribution plans:
The company pays provident fund contributions to publicly administered provident funds as per local from films as overflows are recognized on the basis of business statements received from the distributors. Revenues from terrestrial rights, video rights, satellite rights etc are recognized on transfer / assignment/ effective date of respective rights in accordance with the respective agreement or on realization of the substantial consideration whichever is earlier and on delivery of the specified telecasting material.
Although revenues are accounted on accrual basis as aforesaid, the cost is charged to profit and loss account based on the amortization principles stated in the accounting policy under the head ''cost of feature films''.
ii) Artist Management Receipts:
Artist Management Receipts are recognized in the statement of Profit & Loss on accrual basis as per the Contracts entered by the Artists with respective parties.
iii) Interest Income:
Interest Income is accounted on accrual basis, at the contracted rates.
iv) Others:
Revenue in respect of insurance/other claims is recognized only when it is reasonably certain that the ultimate collection will be made.
m) Employee Benefits: i) Short-term obligations:
Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related services are recognized in respect of employees services up to the end of the reporting period and are measured at the amount expected to be paid when liabilities
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax liabilities are generally recognized for all deductible temporary differences. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognized. Also, for temporary differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognized.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable income will be available against which those deductible temporary differences can be utilized. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction that affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognized.
The Company reviews the carrying amount of deferred tax assets at the end of each reporting period and reduce amounts to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered.
Presentation of current and deferred tax:
Current and deferred tax are recognized as income or an expense in the statement of profit and loss, except when they relate to items that are recognized in Other Comprehensive Income/ Equity, in which case, the current and deferred tax income/ expense are recognized in Other Comprehensive Income/ Equity. regulations. The company has no further payment obligations once the contribution have been paid. The contributions are accounted for as defined contribution plans and the contribution are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
iii) Bonus Plan:
The company recognizes a liability and an expense for bonuses. The company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
n) Taxes on Income:
Income tax expense comprises current and deferred tax. It is recognized in the statement of profit and loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.
i) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year/ period as per the provisions of tax laws enacted in India and any adjustment to the tax payable or receivable in respect of previous years/periods. It is measured using tax rates enacted or substantively enacted at the reporting date.
ii) Deferred tax:
Deferred tax is recognized on deductible temporary differences between the carrying amounts of assets and liabilities in the balance sheet and the corresponding tax bases used in the computation of taxable income, the carry forward of unused tax losses and the carry forward of unused tax credits.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
q) Investment and other financial assets: i) Classification:
The company classifies its financial assets in the following measurement categories:
a) those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss),and
b) those measured at amortized cost
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income.
ii) Measurement:
At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
iii) Minimum Alternative Tax (''MAT''):
Minimum Alternative Tax (''MAT'') under the provisions of the Income-tax Act, 1961 is recognized as current tax in the statement of profit and loss. The credit available under the Act in respect of MAT paid is recognized as a deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognized as a deferred tax asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.
o) Earnings per share:
The basic earnings per share (''EPS'') is computed by dividing the net profit attributable to equity shareholders for the period, by the weighted average number of equity shares outstanding during the period.
Diluted EPS is computed using the weighted average number of equity and dilutive (potential) equity equivalent shares outstanding during the period except where the results would be anti-dilutive.
p) Provisions and Contingencies
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is more likely than not that an outflow of economic benefits will be required to settle the obligation. Provisions are discounted where the effect of discounting is material at a pre-tax rate that reflects current market assessments of the time value of money. Unwinding of the discount (accretion) is recognized as a finance cost. Discount rates are assessed and projected timing of future obligations each reporting period.
As a Lessor: Lease income from operating leases where the Company is a lessor is recognized as income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.
r) Leases:
As a lessee: Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
The tax rate used for the year 2017-18 and for the year 2016-17 tax rate is 20.39% (18% surcharge @ 7% and education cess @ 3%) payable on taxable profits under the Income Tax Act, 1961.
Provision for Tax
The current tax provision is based on tax payable on book profits computed u/s 115JB of the Income Tax Act, 1961. Credit for set off of this book profit tax is not recognized in the books in view of the uncertainty about future taxable profits.
Mar 31, 2016
1. SIGNIFICANT ACCOUNTING POLICIES
i. Accounting Convention:
The accompanying financial statements have been prepared under the historical cost convention in accordance with Generally Accepted Accounting Principles in India. The Company has prepared these financial statements to comply in all material respects with Accounting Standards notified under Section 133 of the Companies Act 2013.
ii. Use of estimates:
The preparation of financial statements in conformity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimate results. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.
iii. Revenue recognition:
a) Turnover:
Audio Product Sale:
Sale of goods to intermediate parties (distributors) and others is recognized when the significant risks and rewards of ownership are transferred and is disclosed net of returns and trade discount.
Audio Rights Receipts
Revenue from sale of Audio Rights is recognized on transfer / Assignment / Delivery of the masters as per the terms of the Contracts / Agreements with the parties.
Royalty from Music Rights:
Royalty is recognized only when it is reasonably certain that the ultimate collection will be made and/or is also
recognized on consideration due as per the Terms of agreement with respective parties.
Revenue from films:
Income from production of films is recognized in the statement of Profit and Loss on release of films as per the contracts / arrangements with distributors. Revenue from distribution of motion pictures is recognized based on ticket sales on exhibition of motion pictures at exhibition theatres. Recoveries from films as overflows are recognized on the basis of business statements received from the distributors. Revenues from terrestrial rights, video rights, satellite rights etc are recognized on transfer / assignment/ effective date of respective rights in accordance with the respective agreement or on realization of the substantial consideration whichever is earlier and on delivery of the specified telecasting material.
Although revenues are accounted on accrual basis as aforesaid, the cost is charged to profit and loss account based on the amortization principles stated in the accounting policy under the head ''cost of feature films'',
b) Artist Management Receipts:
Artist Management Receipts are recognized in the statement of Profit & Loss on accrual basis as per the Contracts entered by the Artists with respective parties.
c) Interest Income:
Interest Income is accounted on accrual basis, at the contracted rates.
d) Others:
Revenue in respect of insurance/other claims is recognized only when it is reasonably certain that the ultimate collection will be made.
iv. Fixed Assets:
Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment losses. Cost includes all expenses incurred to bring the assets to its current location and condition.
v. Impairment of Assets:
Carrying amount of cash generating units/ assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated as the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever the carrying amount exceeds the recoverable amount.
vi. Investments:
All long term investments are valued at cost. Provision for diminution in the value of each long term investments is made to recognize a decline other than of a temporary nature.
Current investments are carried individually at lower of cost and fair value and the resultant decline if any, is charged to revenue.
vii. Copyrights (audio film albums):
The cost of copyrights (audio film albums) is charged to revenue on the date of release of audio, considering the uncertainty of future economic benefits and the short duration over which such benefits may accrue.
viii. In-house music production (Audio non-film albums):
In-house music production costs are charged to revenue on completion/release of albums, considering the uncertainty of future economic benefits and the short duration over which such benefits may accrue.
ix. Depreciation:
Depreciation is provided for on Straight Line method at the rates prescribed in Schedule II to the Companies Act, 2013.
In respect of depreciable assets for which impairment loss is recognized, depreciation / amortization is charged on the revised carrying amount over remaining useful life of the assets.
Improvements to Leasehold Premises are amortized over the period of lease.
x. Inventories:
Items of inventory are valued on the basis as given below:
a) Raw Materials & Packing Materials:
Raw materials and Packing Materials are valued at cost (on First In First Out basis) or net realizable value whichever is lower.
b) Work-ln-Progress:
Work-In-Progress is valued at cost of Raw Materials consumed / used.
c) Finished Goods:
Finished Goods are valued at cost or net realizable value whichever is lower. Cost comprises of cost of purchase, cost of copyrights (audio/video films), cost of in-house music productions (audio/video-non-films/films), cost of conversion and other costs incurred in bringing the inventory to their present location and condition.
d) Cost of Feature Films:
- The Company amortizes 60% of the cost of movie rights acquired or produced by it, on first theatrical release of the movie. The said amortization is made proportionately based on Management''s estimates of revenues pertaining to Domestic Theatrical Rights, International Theatrical Rights, Television Rights, Video Rights and others over a period of 1 2 months from the date of theatrical release of the movie.
- Balance 40% of COP is amortized as per the management estimate / review of future revenues but not exceeding nine years and subject to a minimum of 4.4% in any year.
e) Cost of under Production Films:
Expenses of under production films incurred till the films are ready for release are inventoried.
The production of films requires various types of materials in different qualities and quantities. Considering the peculiar nature of those items including their multiplicity and complexity, it is not practicable to maintain quantitative records of those items. Further, in the absence of certainty of reusability of such items, the same are not valued.
f) The Company reassesses the realizable value and / or revenue potential of inventory based on market condition and future demand and appropriate write down is made in cases where accelerated write down is warranted.
xi. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the original rates of exchange in force at the time transactions are affected. Exchange differences arising on settlement are recognized in the profit and loss account.
Monetary items denominated in foreign currency are restated using the exchange rates prevailing at the date of balance sheet and the resulting net exchange difference is recognized in the profit and loss account.
xii. Borrowing Costs:
Borrowing costs that are attributable to the acquisition of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs that are directly attributable to production of feature films are inventoried as part of cost of production of films. Other borrowing costs are recognized as expense in the period in which they are incurred.
xiii. Employee Benefits:
- Contribution to Provident Fund is charged to revenue.
- Defined Benefit Plan
Company''s liabilities towards gratuity is determined on actuarial basis using the projected unit credit method, which consider each period of service as giving rise to an additional unit of benefit and measures each unit separately to build up the final obligation. Past services are recognized on straight-line basis over the average period until the amended benefits become vested. Actuarial gain and losses are recognized immediately in the Statement of Profit and Loss Account as income or expense. Obligation is measured at the present value of estimated future cash flow using a discount rate that is determined by reference to market yields at the Balance Sheet date on government bonds where the currency and terms of the government bonds are consistent with the currency and estimated terms of the defined benefit obligation.
- In view of the past trends of leave availed, the amount of employee benefit in the form of compensated absences, being in the nature of short term benefit, is accounted for on accrual basis at an undiscounted value.
xiv. Income Taxes:
Provision for current income tax is made on current tax rate based on assessable income computed under the Income Tax Act 1961 or Book Profit computed under Section 115JB (MAT), whichever is higher. MAT credit is recognized subject to requirement of virtual certainty that sufficient future taxable income will be available for set off.
Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. Deferred Tax assets are not recognized unless, in the management judgment, there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax is reviewed at each balance sheet date.
xv. Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the company.
xvi. Segment Accounting:
Company considers Business segment as the Primary segment.
Based on similarity of activities / products, risk and reward structure, organization structure and internal reporting systems, the Company has structured its operations into the following business segments.
- Audio / Video productions
- Film Productions/Distribution.
Operations of the Company do not qualify, for reporting as geographic segments, under the criteria set out under Accounting Standard 17 on segment reporting issued by The Institute of Chartered Accountants of India.
xvii. Earnings Per Share:
Basic earnings per share are computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive equivalent shares outstanding during the year, except where the results would be anti-dilutive.
xviii. Cash Flow:
Cash Flows are reported using indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.
xix. Leases:
Finance leases, where substantially all the risks and benefits incidental to ownership of the leased item, are transferred to the Company, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged to income. Lease management fees, legal charges and other initial direct costs are capitalized.
If there is no reasonable certainty that the Company will obtain the ownership by the end of the lease item, capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.
Leases where the less or effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.
Mar 31, 2015
I. Accounting Convention
The accompanying financial statements have been prepared under the
historical cost convention in accordance with Generally Accepted
Accounting Principles in India. The Company has prepared these
financial statements to comply in all material respects with Accounting
Standards notified under Section 133 of the Companies Act 2013.
ii. Use of estimates:
The preparation of financial statements in conformity with the
generally accepted accounting principles require management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities on the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimate results. Differences
between the actual results and estimates are recognised in the period
in which the results are known / materialised.
iii. Revenue recognition:
(a) Turnover:
Audio Product Sale:
Sale of goods to intermediate parties (distributors) and others is
recognised when the significant risks and rewards of ownership are
transferred and is disclosed net of returns and trade discount. Revenue
from sale of audio rights is recognised on transfer / assignment of the
rights as per the contracts /arrangements with the parties.
Royalties from Music Rights:
Royalty is recognised only when it is reasonably certain that the
ultimate collection will be made.
Revenue from films:
Income from production of films is recognised in the statement of
Profit and Loss on release of films as per the contracts / arrangements
with distributors. Revenue from distribution of motion pictures is
recognized based on ticket sales on exhibition of motion pictures at
exhibition theaters. Recoveries from films as overflows are recognized
on the basis of business statements received from the distributors.
Revenues from terrestrial rights, video rights, satellite rights etc
are recognized on transfer/assignment/ effective date of respective
rights in accordance with the respective agreement or on realization of
the substantial consideration whichever is earlier and on delivery of
the specified telecasting material.
Although revenues are accounted on accrual basis as aforesaid, the cost
is charged to profit and loss account based on the amortisation
principles stated in the accounting policy under the head 'cost of
feature films'.
(b) Artist Management Receipts:
Artist Management Receipts are recognized in the statement of Profit &
Loss on accrual basis as per the Contracts entered by the Artists with
respective parties.
(c) Interest Income:
Interest Income is accounted on accrual basis, at the contracted rates.
(d) Others:
Revenue in respect of insurance/other claims is recognised only when it
is reasonably certain that the ultimate collection will be made.
iv. Fixed Assets
Fixed Assets are stated at cost of acquisition less accumulated
depreciation and impairment losses. Cost includes all expenses incurred
to bring the assets to its current location and condition.
v. Impairment of Assets
Carrying amount of cash generating units/ assets are reviewed at each
Balance Sheet date to determine whether there is any indication of
impairment. If such indication exists, the recoverable amount is
estimated as the net selling price or value in use, whichever is
higher. Impairment loss, if any, is recognised whenever the carrying
amount exceeds the recoverable amount.
vi. Investments
All long term investments are valued at cost. Provision for diminution
in the value of each long term investments is made to recognize a
decline other than of a temporary nature.
Current investments are carried individually at lower of cost and
fairvalue and the resultant decline if any, is charged to revenue.
vll. Copyrights (audio film albums)
The cost of copyrights (audio film albums) is charged to revenue on the
date of release of audio, considering the uncertainty of future
economic benefits and the short duration over which such benefits may
accrue.
viii. In-house music production (Audio non-film albums):
In-house music production costs are charged to revenue on
completion/release of albums, considering the uncertainty of future
economic benefits and the short duration over which such benefits may
accrue.
ix. Depreciation:
Depreciation is provided for on Straight Line method at the rates
prescribed in Schedule II to the Companies Act, 2013.
In respect of depreciable assets for which impairment loss is
recognized, depreciation / amortization is charged on the revised
carrying amount over remaining useful life of the assets.
Improvements to Leasehold Premises are amortized over the period of
lease.
x. Inventories:
Items of inventory are valued on the basis as given below:
(a) Raw Materials & Packing Materials
Raw materials and Packing Materials are valued at cost (on First In
First Out basis) or net realisable value whichever is lower.
(b) Work-In-Progress
Work-In-Progress is valued at cost of Raw Materials consumed/used.
(c) Finished Goods
Finished Goods are valued at cost or net realisable value whichever is
lower. Cost comprises of cost of purchase, cost of copyrights
(audio/video films), cost of in-house music productions
(audio/video-non-films/films), cost of conversion and other costs
incurred in bringing the inventory to their present location and
condition.
(d) Cost of Feature Films
* The Company amortizes 60% of the cost of movie rights acquired or
produced by it, on first theatrical release of the movie. The said
amortization is made proportionately based on Management's estimates of
revenues pertaining to Domestic Theatrical Rights, International
Theatrical Rights, Television Rights, Video Rights and others over a
period of 12 months from the date of theatrical release of the movie.
* Balance 40% of COP is amortized as per the management estimate /
review of future revenues but not exceeding nine years and subject to a
minimum of 4.4% in any year.
(e) Cost of under Production Films
Expenses of under production films incurred till the films are ready for
release are inventorised.
The production of films requires various types of materials in
different qualities and quantities. Considering the peculiar nature of
those items including their multiplicity and complexity, it is not
practicable to maintain quantitative records of those items. Further,
in the absence of certainty of reusability of such items, the same are
not valued.
(f) The Company reassesses the realizable value and / or revenue
potential of inventory based on market condition and future demand and
appropriate write down is made in cases where accelerated write down is
warranted.
xi. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time transactions are effected. Exchange
differences arising on settlement are recognised in the profit and loss
account.
Monetary items denominated in foreign currency are restated using the
exchange rates prevailing at the date of balance sheet and the
resulting net exchange difference is recognised in the profit and loss
account.
xii. Borrowing Costs:
Borrowing costs that are attributable to the acquisition of qualifying
assets are capitalized as part of the cost of such assets. Borrowing
costs that are directly attributable to production of feature films are
inventorised as part of cost of production of films. Other borrowing
costs are recognised as expense in the period in which they are
incurred.
xiii. Employee Benefits:
* Contribution to Provident Fund is charged to revenue.
* Defined Benefit Plan
Company's liabilities towards gratuity is determined on actuarial basis
using the projected unit credit method, which consider each period of
service as giving rise to an additional unit of benefit and measures
each unit separately to build up the final obligation. Past services
are recognised on straight-line basis over the average period until the
amended benefits become vested. Actuarial gain and losses are
recognised immediately in the Statement of Profit and Loss Account as
income or expense. Obligation is measured at the present value of
estimated future cash flow using a discount rate that is determined by
reference to market yields at the Balance Sheet date on government
bonds where the currency and terms of the government bonds are
consistent with the currency and estimated terms of the defined benefit
obligation.
* In view of the past trends of leave availed, the amount of employee
benefit in the form of compensated absences, being in the nature of
short term benefit, is accounted for on accrual basis at an undiscounted
value.
xiv. Income Taxes:
Provision for current income tax is made on current tax rate based on
assessable income computed under the Income Tax Act 1961 or Book Profit
computed under section 115JB (MAT), whichever is higher. MAT credit is
recognized subject to requirement of virtual certainty that sufficient
future taxable income will be available for set off.
Deferred tax assets and liabilities are recognised for future tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or more
subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred Tax assets
are not recognised unless, in the management judgment, there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. The carrying
amount of deferred tax is reviewed at each balance sheet date.
xv. Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the company.
xvi. Segment Accounting
Company considers Business segment as the Primary segment.
Based on similarity of activities / products, risk and reward
structure, organization structure and internal reporting systems, the
Company has structured its operations into the following business
segments.
* Audio/Video productions
* Film Productions / Distribution.
Operations of the Company do not qualify, for reporting as geographic
segments, under the criteria set out under Accounting Standard 17 on
segment reporting issued by The Institute of Chartered Accountants of
India.
xvii. Earning Per Share
Basic earnings per share are computed using the weighted average number
of equity shares outstanding during the year. Diluted earning per share
are computed using the weighted average number of equity and dilutive
equivalent shares outstanding during the year, except where the results
would be anti-dilutive.
xviii. Cash Flow
Cash Flows are reported using indirect method, whereby net profit
before tax is adjusted for the effects of transactions of a non cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
xix. Leases
Finance leases, where substantially all the risks and benefits
incidental to ownership of the leased item, are transferred to the
Company, are capitalized at the lower of the fair value and present
value of the minimum lease payments at the inception of the lease term
and disclosed as leased assets. Lease payments are apportioned between
finance charges and reduction of the lease liability based on the
implicit rate of return. Finance charges are charged to income. Lease
management fees, legal charges and other initial direct costs are
capitalized.
If there is no reasonable certainty that the Company will obtain the
ownership by the end of the lease item, capitalised leased assets are
depreciated over the shorter of the estimated useful life of the asset
or the lease term.
Leases where the less or effectively retains substantially all the
risks and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognised as an expense
in the Statement of Profit and Loss on a straight-line basis over the
lease term.
Mar 31, 2014
I. Accounting Convention
The accompanying financial statements have been prepared under the
historical cost convention in accordance with Generally Accepted
Accounting Principles in India. The Company has prepared these
financial statements to comply in all material respects with Accounting
Standards notified under the Companies (Accounting Standard) Rules,
2006 read with the General Circular 15/2013 dated September 13, 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act 2013 and the relevant provisions of the Companies Act
1956.
ii. Use of estimates:
The preparation of financial statements in conformity with the
generally accepted accounting principles require management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities on the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimate results. Differences
between the actual results and estimates are recognised in the period
in which the results are known / materialised.
iii. Revenue recognition:
(a) Turnover:
Audio Product Sale :
Sale of goods to intermediate parties (distributors) and others is
recognised when the significant risks and rewards of ownership are
transferred and is disclosed net of returns and trade discount. Revenue
from sale of audio rights is recognised on transfer / assignment of the
rights as per the contracts /arrangements with the parties.
Royalties from Music Rights :
Royalty is recognised only when it is reasonably certain that the
ultimate collection will be made.
Revenue from films:
Income from production of films is recognised in the statement of
Profit and Loss on release of films as per the contracts / arrangements
with distributors. Revenue from distribution of motion pictures is
recognized based on ticket sales on exhibition of motion pictures at
exhibition theatres. Recoveries from films as overflows are recognized
on the basis of business statements received from the distributors.
Revenues from terrestrial rights, video rights, satellite rights etc
are recognized on transfer / assignment/ effective date of respective
rights in accordance with the respective agreement or on realization of
the substantial consideration whichever is earlier and on delivery of
the specified telecasting material.
Although revenues are accounted on accrual basis as aforesaid, the cost
is charged to profit and loss account based on the amortisation
principles stated in the accounting policy under the head ''cost of
feature films''.
(b) Artist Management Receipts:
Artist Management Receipts are recognized in the statement of Profit &
Loss on accrual basis as per the Contracts entered by the Artists with
respective parties.
(c) Interest Income:
Interest Income is accounted on accrual basis, at the contracted rates.
(d) Others:
Revenue in respect of insurance/other claims is recognised only when it
is reasonably certain that the ultimate collection will be made.
iv. Fixed Assets
Fixed Assets are stated at cost of acquisition less accumulated
depreciation and impairment losses. Cost includes all expenses incurred
to bring the assets to its current location and condition.
v. Impairment of Assets
Carrying amount of cash generating units/ assets are reviewed at each
Balance Sheet date to determine whether there is any indication of
impairment. If such indication exists, the recoverable amount is
estimated as the net selling price or value in use, whichever is
higher. Impairment loss, if any, is recognised whenever the carrying
amount exceeds the recoverable amount.
vi. Investments
All long term investments are valued at cost. Provision for diminution
in the value of each long term investments is made to recognize a
decline other than of a temporary nature.
Current investments are carried individually at lower of cost and fair
value and the resultant decline if any, is charged to revenue.
vii. Copyrights (audio film albums)
The cost of copyrights (audio film albums) is charged to revenue on the
date of release of audio, considering the uncertainty of future
economic benefits and the short duration over which such benefits may
accrue.
viii. In-house music production (Audio non-film albums):
In-house music production costs are charged to revenue on
completion/release of albums, considering the uncertainty of future
economic benefits and the short duration over which such benefits may
accrue.
ix. Depreciation:
Depreciation is provided for on Straight Line method at the rates
prescribed in Schedule XIV to the Companies Act, 1956.
In respect of depreciable assets for which impairment loss is
recognized, depreciation / amortization is charged on the revised
carrying amount over remaining useful life of the assets.
Improvements to Leasehold Premises are amortized over the period of
lease.
x. Inventories:
Items of inventory are valued on the basis as given below:
(a) Raw Materials & Packing Materials
Raw materials and Packing Materials are valued at cost (on First In
First Out basis) or net realisable value whichever is lower.
(b) work-In-Progress
Work-In-Progress is valued at cost of Raw Materials consumed / used.
(c) Finished Goods
Finished Goods are valued at cost or net realisable value whichever is
lower. Cost comprises of cost of purchase, cost of copyrights
(audio/video films), cost of in-house music productions
(audio/video-non-films/films), cost of conversion and other costs
incurred in bringing the inventory to their present location and
condition.
(d) Cost of Feature Films
* The Company amortizes 60% of the cost of movie rights acquired or
produced by it, on first theatrical release of the movie. The said
amortization is made proportionately based on Management''s estimates of
revenues pertaining to Domestic Theatrical Rights, International
Theatrical Rights, Television Rights, Video Rights and others over a
period of 12 months from the date of theatrical release of the movie.
* Balance 40% of COP is amortized as per the management estimate /
review of future revenues but not exceeding nine years and subject to a
minimum of 4.4% in any year.
(e) Cost of under Production Films
Expenses of under production films incurred till the films are ready
for release are inventorised.
The production of films requires various types of materials in
different qualities and quantities. Considering the peculiar nature of
those items including their multiplicity and complexity, it is not
practicable to maintain quantitative records of those items. Further,
in the absence of certainty of reusability of such items, the same are
not valued.
(f) The Company reassesses the realizable value and / or revenue
potential of inventory based on market condition and future demand and
appropriate write down is made in cases where accelerated write down is
warranted.
xi. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time transactions are effected. Exchange
differences arising on settlement are recognised in the profit and loss
account.
Monetary items denominated in foreign currency are restated using the
exchange rates prevailing at the date of balance sheet and the
resulting net exchange difference is recognised in the profit and loss
account.
xii. Borrowing Costs:
Borrowing costs that are attributable to the acquisition of qualifying
assets are capitalized as part of the cost of such assets. Borrowing
costs that are directly attributable to production of feature films are
inventorised as part of cost of production of films. Other borrowing
costs are recognised as expense in the period in which they are
incurred.
xiii. Employee Benefits:
* Contribution to Provident Fund is charged to revenue.
* Defined Benefit Plan
Company''s liabilities towards gratuity is determined on actuarial basis
using the projected unit credit method, which consider each period of
service as giving rise to an additional unit of benefit and measures
each unit separately to build up the final obligation. Past services
are recognised on straight-line basis over the average period until the
amended benefits become vested. Actuarial gain and losses are
recognised immediately in the Statement of Profit and Loss Account as
income or expense. Obligation is measured at the present value of
estimated future cash flow using a discount rate that is determined by
reference to market yields at the Balance Sheet date on government
bonds where the currency and terms of the government bonds are
consistent with the currency and estimated terms of the defined benefit
obligation.
* In view of the past trends of leave availed, the amount of employee
benefit in the form of compensated absences, being in the nature of
short term benefit, is accounted for on accrual basis at an
undiscounted value.
xiv. Income Taxes:
Provision for current income tax is made on current tax rate based on
assessable income computed under the Income Tax Act 1961 or Book Profit
computed under section 115JB (MAT), whichever is higher. MAT credit is
recognized subject to requirement of virtual certainty that sufficient
future taxable income will be available for set off.
Deferred tax assets and liabilities are recognised for future tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred Tax assets
are not recognised unless, in the management judgment, there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. The carrying
amount of deferred tax is reviewed at each balance sheet date.
xv. Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the company.
xvi. Segment Accounting
Company considers Business segment as the Primary segment. Based on
similarity of activities / products, risk and reward structure,
organization structure and internal reporting systems, the Company has
structured its operations into the following business segments.
* Audio / Video productions
* Film Productions / Distribution.
Operations of the Company do not qualify, for reporting as geographic
segments, under the criteria set out under Accounting Standard 17 on
segment reporting issued by The Institute of Chartered Accountants of
India.
xvii. Earning Per Share
Basic earnings per share are computed using the weighted average number
of equity shares outstanding during the year. Diluted earning per
share are computed using the weighted average number of equity and
dilutive equivalent shares outstanding during the year, except where
the results would be anti-dilutive.
xviii. Cash Flow
Cash Flows are reported using indirect method, whereby net profit
before tax is adjusted for the effects of transactions of a non cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
xix. Leases
Finance leases, where substantially all the risks and benefits
incidental to ownership of the leased item, are transferred to the
Company, are capitalized at the lower of the fair value and present
value of the minimum lease payments at the inception of the lease term
and disclosed as leased assets. Lease payments are apportioned between
finance charges and reduction of the lease liability based on the
implicit rate of return. Finance charges are charged to income. Lease
management fees, legal charges and other initial direct costs are
capitalized.
If there is no reasonable certainty that the Company will obtain the
ownership by the end of the lease item, capitalised leased assets are
depreciated over the shorter of the estimated useful life of the asset
or the lease term.
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognised as an expense
in the Statement of Profit and Loss on a straight- line basis over the
lease term.
Operating lease payment is recognised on a straight line basis over the
lease term.
Mar 31, 2013
I. Accounting Convention
The accompanying fnancial statements have been prepared under the
historical cost convention in accordance with Generally Accepted
Accounting Principles in India. The Company has prepared these fnancial
statements to comply in all material respects with Accounting Standards
notifed under the Companies (Accounting Standard) Rules, 2006 and the
relevant provisions of the Companies Act 1956.
ii. Use of estimates:
The preparation of fnancial statements in conformity with the generally
accepted accounting principles require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
on the date of the fnancial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could
differ from those estimate results. Differences between the actual
results and estimates are recognised in the period in which the results
are known / materialised.
iii. Revenue recognition:
(a) Operating revenue:
Audio Product Sale :
Sale of goods to intermediate parties (distributors) and others is
recognised when the signifcant risks and rewards of ownership are
transferred and is disclosed net of returns and trade discount. Revenue
from sale of audio rights is recognised on transfer / assignment of the
rights as per the contracts /arrangements with the parties.
Royalties from Music Rights :
Royalty is recognised only when it is reasonably certain that the
ultimate collection will be made.
Revenue from flms:
Income from production of flms is recognised in the statement of Proft
and Loss on release of flms as per the contracts / arrangements with
distributors. Revenue from distribution of motion pictures is
recognized based on ticket sales on exhibition of motion pictures at
exhibition theatres. Recoveries from flms as overfows are recognized on
the basis of business statements received from the distributors.
Revenues from terrestrial rights, video rights, satellite rights etc
are recognized on transfer / assignment/ effective date of respective
rights in accordance with the respective agreement or on realization of
the substantial consideration whichever is earlier and on delivery of
the specifed telecasting material.
Although revenues are accounted on accrual basis as aforesaid, the cost
is charged to proft and loss account based on the amortisation
principles stated in the accounting policy under the head ''cost of
feature flms''.
Artist Management Receipts
Artist Management Receipts are recognised in the statements of Proft &
Loss A/c on accrual basis as per the Contracts entered by the Artists
with respective parties.
(b) Interest Income:
Interest Income is accounted on accrual basis, at the contracted rates.
(c) Others:
Revenue in respect of insurance/other claims is recognised only when it
is reasonably certain that the ultimate collection will be made.
iv. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
includes all expenses incurred to bring the assets to its current
location and condition.
v. Impairment of Assets
Carrying amount of cash generating units/ assets are reviewed at each
Balance Sheet date to determine whether there is any indication of
impairment. If such indication exists, the recoverable amount is
estimated as the net selling price or value in use, whichever is
higher. Impairment loss, if any, is recognised whenever the carrying
amount exceeds the recoverable amount.
vi. Investments
All long term investments are valued at cost. Provision for diminution
in the value of each long term investments is made to recognize a
decline other than of a temporary nature.
Current investments are carried individually at lower of cost and fair
value and the resultant decline if any, is charged to revenue.
vii. Copyrights (audio flm albums)
The cost of copyrights (audio flm albums) is charged to revenue on the
date of release of audio, considering the uncertainty of future
economic benefts and the short duration over which such benefts may
accrue.
viii. In-house music production (Audio non-flm albums):
In-house music production costs are charged to revenue on
completion/release of albums, considering the uncertainty of future
economic benefts and the short duration over which such benefts may
accrue.
ix. Depreciation:
Depreciation is provided for on Straight Line method at the rates
prescribed in Schedule XIV to the Companies Act, 1956.
In respect of depreciable assets for which impairment loss is
recognized, depreciation / amortization is charged on the revised
carrying amount over remaining useful life of the assets.
Improvements to Leasehold Premises are amortized over the period of
lease.
x. Inventories:
Items of inventory are valued on the basis as given below:
(a) Raw Materials & Packing Materials
Raw materials and Packing Materials are valued at cost (on First In
First Out basis) or net realisable value whichever is lower.
(b) Work-In-Progress
Work-In-Progress is valued at cost of Raw Materials consumed / used.
(c) Finished Goods
Finished Goods are valued at cost or net realisable value whichever is
lower. Cost comprises of cost of purchase, cost of copyrights
(audio/video flms), cost of in-house music productions
(audio/video-non-flms/flms), cost of conversion and other costs
incurred in bringing the inventory to their present location and
condition.
(d) Cost of Feature Films
- The Company amortizes 60% of the cost of movie rights acquired or
produced by it, on frst theatrical release of the movie. The said
amortization is made proportionately based on Management''s estimates of
revenues pertaining to Domestic
Theatrical Rights, International Theatrical Rights, Television Rights,
Video Rights and others over a period of 12 months from the date of
theatrical release of the movie.
- Balance 40% of COP is amortized as per the
management estimate / review of future revenues but not exceeding nine
years and subject to a minimum of 4.4% in any year.
(e) Cost of under Production Films
Expenses of under production flms incurred till the flms are ready for
release are inventorised.
The production of flms requires various types of materials in different
qualities and quantities. Considering the peculiar nature of those
items including their multiplicity and complexity, it is not
practicable to maintain quantitative records of those items. Further,
in the absence of certainty of reusability of such items, the same are
not valued.
(f) The Company reassesses the realizable value and / or revenue
potential of inventory based on market condition and future demand and
appropriate write down is made in cases where accelerated write down is
warranted.
xi. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time transactions are effected. Exchange
differences arising on settlement are recognised in the proft and loss
account.
Monetary items denominated in foreign currency are restated using the
exchange rates prevailing at the date of balance sheet and the
resulting net exchange difference is recognised in the proft and loss
account.
xii. Borrowing Costs:
Borrowing costs that are attributable to the acquisition of qualifying
assets are capitalized as part of the cost of such assets. Borrowing
costs that are directly attributable to production of feature flms are
inventorised as part of cost of production of flms. Other borrowing
costs are recognised as expense in the period in which they are
incurred.
xiii. Employee Benefts:
- Contribution to Provident Fund is charged to revenue.
- Defned Beneft Plan
Company''s liabilities towards gratuity is determined on actuarial basis
using the projected unit credit method, which consider each period of
service as giving rise to an additional unit of beneft and measures
each unit separately to build up the fnal obligation. Past services are
recognised on straight-line basis over the average period until the
amended benefts become vested. Actuarial gain and losses are
recognised immediately in the Statement of Proft and Loss Account as
income or expense. Obligation is measured at the present value of
estimated future cash fow using a discount rate that is determined by
reference to market yields at the Balance Sheet date on government
bonds where the currency and terms of the government bonds are
consistent with the currency and estimated terms of the defned beneft
obligation.
- In view of the past trends of leave availed, the amount of
employee beneft in the form of compensated absences, being in the
nature of short term beneft, is accounted for on accrual basis at an
undiscounted value.
xiv. Income Taxes:
Provision for current income tax is made on current tax rate based on
assessable income computed under the Income Tax Act 1961 or Book Proft
computed under section 115JB (MAT), whichever is higher. MAT credit is
recognized subject to requirement of virtual certainty that suffcient
future taxable income will be available for set off.
Deferred tax assets and liabilities are recognised for future tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred Tax assets
are not recognised unless, in the management judgment, there is virtual
certainty that suffcient future taxable income will be available
against which such deferred tax assets can be realised. The carrying
amount of deferred tax is reviewed at each balance sheet date.
xv. Provisions and Contingent Liabilities:
Provisions are recognised in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confrmed by the
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the company.
xvi. Segment Accounting
Company considers Business segment as the Primary segment. Based on
similarity of activities / products, risk and reward structure,
organization structure and internal reporting systems, the Company has
structured its operations into the following business segments.
- Audio / Video productions
- Film Productions / Distribution.
Operations of the Company do not qualify, for reporting as geographic
segments, under the criteria set out under Accounting Standard 17 on
segment reporting issued by The Institute of Chartered Accountants of
India.
xvii. Earning Per Share
Basic earnings per share are computed using the weighted average number
of equity shares outstanding during the year. Diluted earning per
share are computed using the weighted average number of equity and
dilutive equivalent shares outstanding during the year, except where
the results would be anti-dilutive.
xviii. Cash Flow
Cash Flows are reported using indirect method, whereby net proft before
tax is adjusted for the effects of transactions of a non cash nature
and any deferrals or accruals of past or future cash receipts or
payments. The cash fows from regular revenue generating, investing and
fnancing activities of the Company are segregated.
xix. Leases
Finance leases, where substantially all the risks and benefts
incidental to ownership of the leased item, are transferred to the
Company, are capitalised at the lower of the fair value and present
value of the minimum lease payments at the inception of the lease term
and disclosed as leased assets. Lease payments are apportioned between
fnance charges and reduction of the lease liability based on the
implicit rate of return. Finance charges are charged to income. Lease
management fees, legal charges and other initial direct costs are
capitalised.
If there is no reasonable certainty that the Company will obtain the
ownership by the end of the lease item, capitalised leased assets are
depreciated over the shorter of the estimated useful life of the asset
or the lease term.
Leases where the lessor effectively retains substantially all the risks
and benefts of ownership of the leased term, are classifed as operating
leases. Operating lease payments are recognised as an expense in the
Proft and Loss account on a straight-line basis over the lease term.
Mar 31, 2012
I. Accounting Convention:
The accompanying financial statements have been prepared under the
historical cost convention in accordance with Generally Accepted
Accounting Principles in India. The Company has prepared these
financial statements to comply in all material respects with Accounting
Standards notified under the Companies (Accounting Standard) Rules,
2006 and the relevant provisions of the Companies Act 1956.
ii. Use of estimates:
The preparation of financial statements in conformity with the
generally accepted accounting principles require management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities on the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimate results. Differences
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
iii. Presentation & Disclosure of Financial Statement:
For the purpose of preparation and presentation of Financial Statements
for the year ended 31st March 2012 the Company has adopted revised
schedule VI notified under the Companies Act 1956. Though, the adoption
of revised schedule VI has no impact on the recognition and measurement
principles consistently followed by the Company, it has significant
impact on presentation and disclosures made in the financial
statements. Accordingly, all assets & liabilities have been classified
as current & non - current as per the operating cycle (3 years
estimated by the Company for films business) and other criteria set out
in the Schedule VI of the Companies Act, 1956. Further, the Company, in
preparing financial statements including Notes to Accounts, has
maintained balance between providing excessive details that may not
assist users of financial statements and not providing important
information as a result of too much aggregation.
iv. Revenue recognition:
(a) Turnover:
Audio Product Sale:
Sale of goods to intermediate parties (distributors) and others is
recognized when the significant risks and rewards of ownership are
transferred and is disclosed net of returns and trade discount. Revenue
from sale of audio rights is recognized on transfer / assignment of the
rights as per the contracts /arrangements with the parties.
Royalties from Music Rights:
Royalty is recognized only when it is reasonably certain that the
ultimate collection will be made.
Revenue from films:
Income from production of films is recognized in the statement of
Profit and Loss on release of films as per the contracts / arrangements
with distributors. Revenue from distribution of motion pictures is
recognized based on ticket sales on exhibition of motion pictures at
exhibition theatres. Recoveries from films as overflows are recognized
on the basis of business statements received from the distributors.
Revenues from terrestrial rights, video rights, satellite rights etc
are recognized on transfer / assignment of respective rights in
accordance with the respective agreement or on realization of the
substantial consideration whichever is earlier and on delivery of the
specified telecasting material.
Although revenues are accounted on accrual basis as aforesaid, the cost
is charged to profit and loss account based on the amortization
principles stated in the accounting policy under the head 'cost of
feature films'.
(b) Artist Management Receipts:
Artist Management Receipts are recognized in the statements of Profit &
Loss A/c on accrual basis as per the Contracts entered by the Artists
with respective parties.
(c) Interest Income:
Interest Income is accounted on accrual basis, at the contracted rates.
(d) Others:
Revenue in respect of insurance/other claims is recognized only when it
is reasonably certain that the ultimate collection will be made.
v. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
includes all expenses incurred to bring the assets to its current
location and condition.
vi. Impairment of Assets
Carrying amount of cash generating units/ assets are reviewed at each
Balance Sheet date to determine whether there is any indication of
impairment. If such indication exists, the recoverable amount is
estimated as the net selling price or value in use, whichever is
higher. Impairment loss, if any, is recognized whenever the carrying
amount exceeds the recoverable amount.
vii. Investments
All long term investments are valued at cost. Provision for diminution
in the value of each long term investments is made to recognize a
decline other than of a temporary nature.
Current investments are carried individually at lower of cost and fair
value and the resultant decline if any, is charged to revenue.
viii. Copyrights (audio film albums)
The cost of copyrights (audio film albums) is charged to revenue on the
date of release of audio, considering the uncertainty of future
economic benefits and the short duration over which such benefits may
accrue.
ix. In-house music production (Audio non-film albums):
In-house music production costs are charged to revenue on
completion/release of albums, considering the uncertainty of
future economic benefits and the short duration over which such
benefits may accrue.
x. Depreciation:
Depreciation is provided for on Straight Line method at the rates
prescribed in Schedule XIV to the Companies Act, 1956.
In respect of depreciable assets for which impairment loss is
recognized, depreciation / amortization is charged on the revised
carrying amount over remaining useful life of the assets.
Improvements to Leasehold Premises are amortized over the period of
lease.
xi. Inventories:
Items of inventory are valued on the basis as given below:
(a) Raw Materials & Packing Materials
Raw materials and Packing Materials are valued at cost (on First In
First Out basis) or net realizable value whichever is lower.
(b) Work-In-Progress
Work-In-Progress is valued at cost of Raw Materials consumed / used.
(c) Finished Goods
Finished Goods are valued at cost or net realizable value whichever is
lower. Cost comprises of cost of purchase, cost of copyrights
(audio/video films), cost of in-house music productions
(audio/video-non-films/films), cost of conversion and other costs
incurred in bringing the inventory to their present location and
condition.
(d) Cost of Feature Films
- The Company amortizes 60% of the cost of movie rights acquired or
produced by it, on first theatrical release of the movie. The said
amortization is made proportionately based on Management's estimates of
revenues pertaining to Domestic Theatrical Rights, International
Theatrical Rights, Television Rights, Video Rights and others over a
period of 12 months from the date of theatrical release of the movie.
- Balance 40% of COP is amortized as per the management estimate /
review of future revenues but not exceeding nine years and subject to a
minimum of 4.4% in any year.
(e) Cost of under Production Films
Expenses of under production films incurred till the films are ready
for release are inventoried.
The production of films requires various types of materials in
different qualities and quantities. Considering the peculiar nature of
those items including their multiplicity and complexity, it is not
practicable to maintain quantitative records of those items. Further,
in the absence of certainty of reusability of such items, the same are
not valued.
(f) The Company reassesses the realizable value and / or revenue
potential of inventory based on market condition and future demand and
appropriate write down is made in cases where accelerated write down is
warranted.
xii. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time transactions are effected. Exchange
differences arising on settlement are recognized in the profit and loss
account.
Monetary items denominated in foreign currency are restated using the
exchange rates prevailing at the date of balance sheet and the
resulting net exchange difference is recognized in the profit and loss
account.
xiii. Borrowing Costs:
Borrowing costs that are attributable to the acquisition of qualifying
assets are capitalized as part of the cost of such assets. Borrowing
costs that are directly attributable to production of feature films are
inventoried as part of cost of production of films. Other borrowing
costs are recognized as expense in the period in which they are
incurred.
xiv. Employee Benefits:
- Contribution to Provident Fund is charged to revenue.
- Defined Benefit Plan
Company's liabilities towards gratuity is determined on actuarial basis
using the projected unit credit method, which consider each period of
service as giving rise to an additional unit of benefit and measures
each unit separately to build up the final obligation. Past services
are recognized on straight-line basis over the average period until the
amended benefits become vested. Actuarial gain and losses are
recognized immediately in the Statement of Profit and Loss Account as
income or expense. Obligation is measured at the present value of
estimated future cash flow using a discount rate that is determined by
reference to market yields at the Balance Sheet date on government
bonds where the currency and terms of the government bonds are
consistent with the currency and estimated terms of the defined benefit
obligation.
- In view of the past trends of leave availed, the amount of employee
benefit in the form of compensated absences, being in the nature of
short term benefit, is accounted for on accrual basis at an
undiscounted value.
xv. Income Taxes:
Provision for current income tax is made on current tax rate based on
assessable income computed under the Income Tax Act 1961 or Book Profit
computed under section 115JB (MAT), whichever is higher. MAT credit is
recognized subject to requirement of virtual certainty that sufficient
future taxable income will be available for set off.
Deferred tax assets and liabilities are recognized for future tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred Tax assets
are not recognized unless, in the management judgment, there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. The carrying
amount of deferred tax is reviewed at each balance sheet date.
xvi. Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the company.
xvii. Segment Accounting
Company considers Business segment as the Primary segment.
Based on similarity of activities / products, risk and reward
structure, organization structure and internal reporting systems, the
Company has structured its operations into the following business
segments.
- Audio / Video productions
- Film Productions / Distribution.
Operations of the Company do not qualify, for reporting as geographic
segments, under the criteria set out under Accounting Standard 17 on
segment reporting issued by The Institute of Chartered Accountants of
India.
xviii. Earnings Per Share
Basic earnings per share are computed using the weighted average number
of equity shares outstanding during the year. Diluted earnings per
share are computed using the weighted average number of equity and
dilutive equivalent shares outstanding during the year, except where
the results would be anti-dilutive.
xix. Cash Flow
Cash Flows are reported using indirect method, whereby net profit
before tax is adjusted for the effects of transactions of a non cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
xx. Leases
Finance leases, where substantially all the risks and benefits
incidental to ownership of the leased item, are transferred to the
Company, are capitalized at the lower of the fair value and present
value of the minimum lease payments at the inception of the lease term
and disclosed as leased assets. Lease payments are apportioned between
finance charges and reduction of the lease liability based on the
implicit rate of return. Finance charges are charged to income. Lease
management fees, legal charges and other initial direct costs are
capitalized.
If there is no reasonable certainty that the Company will obtain the
ownership by the end of the lease item, capitalized leased assets are
depreciated over the shorter of the estimated useful life of the asset
or the lease term.
Leases where the less or effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss account on a straight-line basis over the lease
term.
Mar 31, 2011
1. Basis of preparation of financial statements:
The accompanying financial statements have been prepared under the
historical cost convention in accordance with generally accepted
accounting principles, provisions of the Companies Act, 1956 and the
applicable accounting standards issued by Institute of Chartered
Accountants of India.
2. Use of estimates:
The preparation of financial statements in conformity with the
generally accepted accounting principles require management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities on the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimate results. Differences
between the actual results and estimates are recognised in the period
in which the results are known / materialised.
3. Revenue recognition:
(i) Turnover:
Audio Product Sale:
Sale of goods to intermediate parties (distributors) and others is
recognised when the significant risks and rewards of ownership are
transferred and is disclosed net of returns and trade discount. Revenue
from sale of audio rights is recognised on transfer / assignment of the
rights as per the contracts /arrangements with the parties.
Royalties from Music Rights:
Royalty is recognised only when it is reasonably certain that the
ultimate collection will be made.
Revenue from films:
Income from production of films is recognised in the statement of
Profit and Loss on release of films as per the contracts / arrangements
with distributors. Revenue from distribution of motion pictures is
recognized based on ticket sales on exhibition of motion pictures at
exhibition theatres. Recoveries from films as overflows are recognized
on the basis of business statements received from the distributors.
Revenues from terrestrial rights, video rights, satellite rights etc
are recognized on transfer / assignment of respective rights on
effective date as per the contracts with the parties.
Although revenues are accounted on accrual basis as aforesaid, the cost
is charged to profit and loss account based on the amortisation
principles stated in the accounting policy under the head 'cost of
feature films'.
(ii) Artist Management Receipts:
Artist Management Receipts are recognised in the statements of Profit &
Loss A/c on accrual basis as per the Contracts entered by the Artists
with respective parties.
(iii) Interest Income:
Interest Income is accounted on accrual basis, at the contracted rates.
(iv) Others:
Revenue in respect of insurance/other claims is recognised only when it
is reasonably certain that the ultimate collection will be made.
4. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
includes all expenses incurred to bring the assets to its current
location and condition.
5. Impairment of Assets
Carrying amount of cash generating units/ assets are reviewed at each
Balance Sheet date to determine whether there is any indication of
impairment. If such indication exists, the recoverable amount is
estimated as the net selling price or value in use, whichever is
higher. Impairment loss, if any, is recognised whenever the carrying
amount exceeds the recoverable amount.
6. Investments
All long term investments are valued at cost. Provision for diminution
in the value of each long term investments is made to recognize a
decline other than of a temporary nature.
Current investments are carried individually at lower of cost and fair
value and the resultant decline if any, is charged to revenue.
7. Copyrights (audio film albums)
The cost of copyrights (audio film albums) is charged to revenue on the
date of release of audio, considering the uncertainty of future
economic benefits and the short duration over which such benefits may
accrue.
8. In-house music production (Audio non-film albums):
In-house music production costs are charged to revenue on
completion/release of albums, considering the uncertainty of future
economic benefits and the short duration over which such benefits may
accrue.
9. Depreciation:
Depreciation is provided for on Straight Line method at the rates
prescribed in Schedule XIV to the Companies Act, 1956.
In respect of depreciable assets for which impairment loss is
recognized, depreciation / amortization is charged on the revised
carrying amount over remaining useful life of the assets.
Improvements to Leasehold Premises are amortized over the period of
lease.
10. Inventories:
Items of inventory are valued on the basis as given below:
(i) Raw Materials & Packing Materials
Raw materials and Packing Materials are valued at cost (on First In
First Out basis) or net realisable value whichever is lower.
(ii) Work-In-Progress
Work-In-Progress is valued at cost of Raw Materials consumed / used.
(iii) Finished Goods
Finished Goods are valued at cost or net realisable value whichever is
lower. Cost comprises of cost of purchase, cost of copyrights
(audio/video films), cost of in-house music productions
(audio/video-non-films/films), cost of conversion and other costs
incurred in bringing the inventory to their present location and
condition.
(iv) Cost of Feature Films
i] The Company amortizes 60% of the cost of movie rights acquired or
produced by it, on first theatrical release of the movie. The said
amortization is made proportionately based on Management's estimates of
revenues pertaining to Domestic Theatrical Rights, International
Theatrical Rights, Television Rights, Video Rights and others over a
period of 12 months from the date of theatrical release of the movie.
ii] Balance 40% of COP is amortized on an equitable basis over a
maximum period of nine years.
(Refer Note B](3) of Schedule 21)
(v) Cost of under Production Films
Expenses of under production films incurred till the films are ready
for release are inventorised.
The production of films requires various types of materials in
different qualities and quantities. Considering the peculiar nature of
those items including their multiplicity and complexity, it is not
practicable to maintain quantitative records of those items. Further,
in the absence of certainty of reusability of such items, the same are
not valued.
(vi) The Company reassesses the realizable value and / or revenue
potential of inventory based on market condition and future demand and
appropriate write down is made in cases where accelerated write down is
warranted.
11. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time transactions are effected. Exchange
differences arising on settlement are recognised in the profit and loss
account.
Monetary items denominated in foreign currency are restated using the
exchange rates prevailing at the date of balance sheet and the
resulting net exchange difference is recognised in the profit and loss
account.
12. Borrowing Costs:
Borrowing costs that are attributable to the acquisition of qualifying
assets are capitalized as part of the cost of such assets. Borrowing
costs that are directly attributable to production of feature films are
inventorised as part of cost of production of films. Other borrowing
costs are recognised as expense in the period in which they are
incurred.
13. Employee Benefits:
i. Contribution to Provident Fund is charged to revenue.
ii. Defined Benefit Plan
Company's liabilities towards gratuity is determined on actuarial basis
using the projected unit credit method, which consider each period of
service as giving rise to an additional unit of benefit and measures
each unit separately to build up the final obligation. Past services
are recognised on straight-line basis over the average period until the
amended benefits become vested. Actuarial gain and losses are
recognised immediately in the Statement of Profit and Loss Account as
income or expense. Obligation is measured at the present value of
estimated future cash flow using a discount rate that is determined by
reference to market yields at the Balance Sheet date on government
bonds where the currency and terms of the government bonds are
consistent with the currency and estimated terms of the defined benefit
obligation.
iii. In view of the past trends of leave availed, the amount of
employee benefit in the form of compensated absences, being in the
nature of short term benefit, is accounted for on accrual basis at an
undiscounted value.
14. Income Taxes:
Provision for current income tax is made on current tax rate based on
assessable income computed under the Income Tax Act 1961 or Book Profit
computed under section 115JB (MAT), whichever is higher. MAT credit is
recognized subject to requirement of virtual certainty that sufficient
future taxable income will be available for set off.
Deferred tax assets and liabilities are recognised for future tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred Tax assets
are not recognised unless, in the management judgment, there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. The carrying
amount of deferred tax is reviewed at each balance sheet date.
15. Provisions and Contingent Liabilities:
Provisions are recognised in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the company.
16. Segment Accounting
Company considers Business segment as the Primary segment.
Based on similarity of activities / products, risk and reward
structure, organization structure and internal reporting systems, the
Company has structured its operations into the following business
segments.
i] Audio / Video productions
ii] Film Productions / Distribution.
Operations of the Company do not qualify, for reporting as geographic
segments, under the criteria set out under Accounting Standard 17 on
segment reporting issued by The Institute of Chartered Accountants of
India.
17. Earning Per Share
Basic earnings per share are computed using the weighted average number
of equity shares outstanding during the year. Diluted earning per share
are computed using the weighted average number of equity and dilutive
equivalent shares outstanding during the year, except where the results
would be anti-dilutive.
18. Cash Flow
Cash Flows are reported using indirect method, whereby net profit
before tax is adjusted for the effects of transactions of a non cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
19. Leases
Finance leases, where substantially all the risks and benefits
incidental to ownership of the leased item, are transferred to the
Company, are capitalised at the lower of the fair value and present
value of the minimum lease payments at the inception of the lease term
and disclosed as leased assets. Lease payments are apportioned between
finance charges and reduction of the lease liability based on the
implicit rate of return. Finance charges are charged to income. Lease
management fees, legal charges and other initial direct costs are
capitalised.
If there is no reasonable certainty that the Company will obtain the
ownership by the end of the lease item, capitalised leased assets are
depreciated over the shorter of the estimated useful life of the asset
or the lease term.
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognised as an expense
in the Profit and Loss account on a straight-line basis over the lease
term.
Mar 31, 2010
1. Basis of preparation of financial statements:
The accompanying financial statements have been prepared under the
historical cost convention in accordance with generally accepted
accounting principles, provisions of the Companies Act, 1956 and the
applicable accounting standards issued by Institute of Chartered
Accountants of India.
2. Use of estimates:
The preparation of financial statements in conformity with the
generally accepted accounting principles require management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities on the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimate results. Differences
between the actual results and estimates are recognised in the period
in which the results are known / materialised.
3. Revenue recognition: (i) Turnover:
Audio Product Sale:
Sale of goods to intermediate parties (distributors) and others is
recognised when the significant risks and rewards of ownership are
transferred and is disclosed net of returns and trade discount. Revenue
from sale of audio rights is recognised on transfer / assignment of the
rights as per the contracts /arrangements with the parties.
Royalties from Music Rights :
Royalty is recognised only when it is reasonably certain that the
ultimate collection will be made.
Revenue from films:
Income from production of films is recognised in the statement of
Profit and Loss on release of films as per the contracts / arrangements
with distributors. Revenue from distribution of motion pictures is
recognized based on ticket sales on exhibition of motion pictures at
exhibition theatres. Recoveries from films as overflows are recognized
on the basis of business statements received from the distributors.
Revenues from terrestrial rights, video rights, satellite rights are
recognized on transfer / assignment of respective rights on effective
date as per the contracts with the parties.
Although revenues are accounted on accrual basis as aforesaid, the cost
is charged to profit and loss account based on the amortisation
principles stated in the accounting policy under the head cost of
feature films.
(ii) Artist Management Receipts:
Artist Management Receipts are recognised in the statements of Profit &
Loss A/c on accrual basis as per the Contracts entered by the Artists
with respective parties.
(iii) Interest Income:
Interest Income is accounted on accrual basis, at the contracted rates.
(iv) Others:
Revenue in respect of insurance/other claims is recognised only when it
is reasonably certain that the ultimate collection will be made.
4. Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation. Cost
includes all expenses incurred to bring the assets to its current
location and condition.
5. Impairment of Assets:
Carrying amount of cash generating units/ assets are reviewed at each
Balance Sheet date to determine whether there is any indication of
impairment. If such indication exists, the recoverable amount is
estimated as the net selling price or value in use, whichever is
higher. Impairment loss, if any, is recognised whenever the carrying
amount exceeds the recoverable amount.
6. Copyrights (audio film albums):
The cost of copyrights (audio film albums) is charged to revenue on the
date of release of audio, considering the uncertainty of future
economic benefits and the short duration over which such benefits may
accrue.
7. In-house music production (Audio non-film albums):
In-house music production costs are charged to revenue on
completion/release of albums, considering the uncertainty of future
economic benefits and the short duration over which such benefits may
accrue.
8. Depreciation:
Depreciation is provided for on Straight Line method at the rates
prescribed in Schedule XIV to the Companies Act, 1956.
In respect of depreciable assets for which impairment loss is
recognized, depreciation / amortization is charged on the revised
carrying amount over remaining useful life of the assets.
Improvements to Leasehold Premises are amortized over the period of
lease.
9. Inventories:
Items of inventory are valued on the basis as given below:
(i) Raw Materials & Packing Materials:
Raw materials and Packing Materials are valued at cost (on First In
First Out basis) or net realisable value whichever is lower.
(ii) Work-in-Progress:
Work-in-Progress is valued at cost of Raw Materials consumed / used.
(iii) Finished Goods:
Finished Goods are valued at cost or net realisable value whichever is
lower. Cost comprises of cost of purchase, cost of copyrights
(audio/video films), cost of in-house music productions
(audio/video-non-films/films), cost of conversion and other costs
incurred in bringing the inventory to their present location and
condition.
(iv) Cost of Feature Films:
Cost of feature films produced or acquired is inventorised and charged
to profit and loss account on release of films in the ratio of current
revenue to the total expected revenue. At the end of each accounting
period, the company reassesses the expected revenue / realisable value
of the balance unamortised cost and if the net realisable value is less
than unamortised cost, the same is written down to the net realisable
value.
(v) Cost of under Production Films:
Expenses of under production films incurred till the films are ready
for release are inventorised.
The production of films requires various types of materials in
different qualities and quantities. Considering the peculiar nature of
those items including their multiplicity and complexity, it is not
practicable to maintain quantitative records of those items. Further,
in the absence of reusability of such items, the same are not valued.
10. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time transactions are effected. Exchange
differences arising on settlement are recognised in the profit and loss
account.
Monetary items denominated in foreign currency are restated using the
exchange rates prevailing at the date of balance sheet and the
resulting net exchange difference is recognised in the profit and loss
account.
11. Borrowing Costs:
Borrowing costs that are attributable to the acquisition of qualifying
assets are capitalized as part of the cost of such assets. Borrowing
costs that are directly attributable to production of feature films are
inventorised as part of cost of production of films. Other borrowing
costs are recognised as expense in the period in which they are
incurred.
12. Employee Benefits:
i. Contribution to Provident Fund is charged to revenue.
ii. Defined Benefit Plan
Companys liabilities towards gratuity is determined on actuarial basis
using the projected unit credit method, which consider each period of
service as giving rise to an additional unit of benefit and measures
each unit separately to build up the final obligation. Past services
are recognised on straight-line basis over the average period until the
amended benefits become vested. Actuarial gain and losses are
recognised immediately in the Statement of Profit and Loss Account as
income or expense. Obligation is measured at the present value of
estimated future cash flow using a discount rate that is determined by
reference to market yields at the Balance Sheet date on government
bonds where the currency and terms of the government bonds are
consistent with the currency and estimated terms of the defined benefit
obligation.
iii. In view of the past trends of leave availed, the amount of
employee benefit in the form of compensated absences, being in the
nature of short term benefit, is accounted for on accrual basis at an
undiscounted value.
13. Income Taxes:
Provision for current income tax is made on current tax rate based on
assessable income computed under the Income Tax Act 1961 or Book Profit
computed under section 115JB (MAT), whichever is higher. MAT credit is
recognized subject to requirement of virtual certainty that sufficient
future taxable income will be available for set off.
Deferred tax assets and liabilities are recognised for future tax
consequences attributable to the timing differences between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as at the Balance Sheet date. Deferred Tax assets
are not recognised unless, in the management judgment, there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. The carrying
amount of deferred tax is reviewed at each balance sheet date.
14. Provisions and Contingent Liabilities:
Provisions are recognised in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the company.
15. Segment Accounting:
Company considers Business segment as the Primary segment.
Based on similarity of activities / products, risk and reward
structure, organization structure and internal reporting systems, the
Company has structured its operations into the following business
segments.
i] Audio / Video productions
ii] Film Productions / Distribution.
Operations of the Company do not qualify, for reporting as geographic
segments, under the criteria set out under Accounting Standard 17 on
segment reporting issued by The Institute of Chartered Accountants of
India.
16. Earning Per Share:
Basic earnings per share are computed using the weighted average number
of equity shares outstanding during the year. Diluted earning per share
are computed using the weighted average number of equity and dilutive
equivalent shares outstanding during the year, except where the results
would be anti-dilutive.
17. Cash Flow:
Cash Flows are reported using indirect method, whereby net profit
before tax with adjusted for the effects of transactions of a non cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
18. Leases:
Finance leases, where substantially all the risks and benefits
incidental to ownership of the leased item, are transferred to the
Company, are capitalised at the lower of the fair value and present
value of the minimum lease payments at the inception of the lease term
and disclosed as leased assets. Lease payments are apportioned between
finance charges and reduction of the lease liability based on the
implicit rate of return. Finance charges are charged to income. Lease
management fees, legal charges and other initial direct costs are
capitalised.
If there is no reasonable certainty that the Company will obtain the
ownership by the end of the lease item, capitalised leased assets are
depreciated over the shorter of the estimated useful life of the asset
or the lease term.
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognised as an expense
in the Profit and Loss account oia straight-line basis over the lease
term.
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Company History
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Tips Music Ltd. Key Financial Ratios
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Tips Music Ltd. Results
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Tips Music Ltd. Financial Data
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Tips Music Ltd. Reports
- Accounting Policies
- Auditors Report
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Tips Music Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
- Change of Name
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Indian equities open higher as Nifty tops 23,100 and Sensex climbs over 700 points -
Intraday Stocks To Buy Today, March 25: Top Picks By Anand James of Geojit Investments On Wednesday
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Stock Market Today: Nifty Closes Near 23,000, Sensex Up 1.8%: IndiGo, L&T, Eternal, Asian Paints Top Gainers -
Steel Stock Gains 5.14% On Getting NCLT Nod For Key Merger; Do You Own? -
Stock Market Opens Strong: Nifty Up 1.5%, Sensex Rallies 1,516 Pts; Rupee Recovers as Trump Delays Iran Strike -
D-Street Mayhem: Rs 15 Lakh Cr Wiped Out As Nifty-Sensex Close 2.5% Lower, Rupee In Free-Fall Amid Iran-US War -
Indian equities outlook today as Bank Nifty remains weak and Nifty tests support -
Stock Market Crash: Sensex, Nifty Hit 1-Year Low; How US-Israel-Iran War Wiped Out Rs 4,753,333 Crore -
Intraday Stocks To Buy Today, March 23: Top Picks By Anand James of Geojit Investments On Monday
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Nifty, Sensex Down 8% Amid Iran-US War, Crude Oil At Sky High: How Past Geopolitical Crises Have Shaped Market -
Stock Market Weekly Wrap: Sensex, Nifty End In Green Amid Iran-US War, Crude Surge, Rupee Slide -
Nifty Falls as Global Cues Persist and Gulf Tensions Weigh on Indian Markets -
Intraday Stocks To Buy Today, March 20: Top Picks By Anand James of Geojit Investments On Friday
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Nifty, Sensex Stage Sharp Rebound After Biggest Crash; IT Stocks in Green | Why Is Stock Market Rising Today? -
Biggest Single-Day Market Crash! Rs 13 Lakh Cr Wiped Out as Sensex-Nifty Tank 3%; HDFC, ITC Hit 52-Week Lows -
Indian Equities Open Weak as Nifty Holds Key Levels and Bank Nifty Eyes Support
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