Studio LSD Ltd. कंपली की लेखा नीति

Mar 31, 2025

I CORPORATE INFORMATION

Studio LSD Limited (The “Company”) initally
was a private limited company incorporated
on 02nd February, 2017 vide registeration No.
U92410MH2017PTC290116, at Mumbai under the
provisions of Companies Act, 2013 and has become
public limited company w.e.f 19th September 2024
vide registeration No. U92410MH2017PLC290116.
The company is under the process of listing and is
situated at Unit No. 302, 301, 3rd Floor, Laxmi Mall,
Laxmi Industrial Estate, New Link Road, Andheri
West, Mumbai, Maharashtra, India, 400053. The
company carries on the business of production
for Television and Films, Content creation for
Television, Films and new media, distribution of
films and motion pictures, including the running
theatres, cinemas, studios and cinematographic
shows and exhibitions.

II BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The preparation of financial statements in
conformity with generally accepted accounting
principles (‘GAAP’) requires management to
make estimates and assumptions that affect
the reported amounts of assets and liabilities
and the disclosure of contingent liabilities on the
date of the financial statements. Actual results
could differ from those estimates. Any revision to
accounting estimates is recognized prospectively
in current and future periods.

III USE OF ESTIMATES:

The preparation of the financial statements in
conformity with Generally Accepted Accounting
Principles requires the Management to make
estimates and assumptions that affect the
reported balances of assets and liabilities and
disclosures relating to contingent assets and
liabilities as at the date of the financial statements
and the income and expenses during the year.
Examples of such estimates include provisions
for doubtful debts, income taxes, post - sales
customer support reported amounts of and the
useful lives of Property Plant and Equipments and
intangible assets.

IV REVENUE RECOGNITION:

Revenue is recognized to the extent that it is
probable that the economic benefits will flow
to the Company and the revenue can be reliably
measured in accordance with AS-9, Revenue
Recognition. Sales are recognized on accrual basis,
and only after transfer of services to the customer.

The Company derives revenue from producing
television programs and selling them to the
various television broadcasting channels.
The Company identifies and evaluate each
performance obligation under the contract.
Revenue recognition is based on the delivery
of performance obligations and an assessment
of when control is transferred to the customer.
Revenue is recognized either when the
performance obligation in the contract has been
performed (‘point in time’ recognition) or ‘over
time’ as control of the performance obligation is
transferred to the customer.

Revenue generated from the commissioned
television programs produced for broadcasters
is recognized over the period of time over the
contract period. Revenue excludes any taxes and
duties collected on behalf of the government.

Interest Income: 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 at 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 carrying amount on initial
recognition.

Dividend Income: Dividend Income is recognised
when the owners right to receive payment is
established and it is probable that the economic
benefits associated with the dividend will flow to
the Company, and the amount of the dividend can
be measured reliably.

Other Income : Other items of income and
expenditure are recognized on accrual basis and

as a going concern basis, and the accounting
policies are consistent with the generally accepted
accounting policies.

V PROPERTY, PLANT AND EQUIPMENT:

Property Plant and Equipments are stated at
cost, less accumulated depreciation and any
accumulated impairment loss. Cost includes cost
of acquisition of an asset and expenditure that is
directly attributable to the acquisition of the asset
like freight, installation cost, duties and taxes to
the extent input credit is unavailable, and other
incidental expenses, incurred up to the installation
stage, related to such acquisition.

Subsequent costs are included in the asset’s
carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the item will
flow to the Company and the cost of the item can
be measured reliably. The carrying amount of any
component accounted for as a separate asset is
derecognised when replaced. All other repairs and
maintenance expenses are charged to Statement
of Profit and Loss during the reporting period in
which they are incurred.

Gains or losses arising from the retirement or
disposal of a tangible asset are determined as the
difference between the net disposal proceeds and
the carrying amount of the asset and recognised
as income or expense in the Statement of Profit
and Loss.

Intangible assets that are acquired by the
Company are measured initially at cost. After initial
recognition, an intangible asset is carried at its
cost less any accumulated amortisation and any
accumulated impairment loss.

VI DEPRECIATION AND AMORTISATION:

The Company has applied the estimated useful
lives as specified in Schedule II of the Companies
Act 2013 and calculated the depreciation as per
the Writen Down Value (WDV) method to allocate
the cost of the asset, net of their residual values.
Depreciation on new assets acquired during
the year is provided at the rates applicable from
the date of acquisition to the end of the financial
year. In respect of the assets sold during the year,
depreciation is provided from the beginning of the
year till the date of its disposal.

The residual values are not more than 5% of the
original cost of the asset. The assets’ residual
values and useful lives are reviewed, and adjusted
if appropriate, at the end of each reporting
period. An asset’s carrying amount is written
down immediately to its recoverable amount

if the asset’s carrying amount is higher than its
estimated recoverable amount.

Intangible assets are amortised on a straight-line
basis over the estimated useful life as specified
in Schedule II of the Companies Act 2013. The
amortisation expense on intangible assets with
finite lives is recognised in the statement of profit
and loss. In respect of the assets sold during the
year, amortisation is provided from the beginning
of the year till the date of its disposal.

VII EMPLOYEE BENEFITS:

The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized as
an expense during the period when the employees
render the services.

VIII TAXES ON INCOME:

Tax expense comprises both current and deferred
tax at the applicable enacted/ substantively
enacted rates. Current tax represents the amount
of income tax payable/ recoverable in respect of
the taxable income/ loss for the reporting period. .

The Provision for current income tax charge is
calculated on the basis of the tax laws enacted
(i.e Income Tax Act, 1961) or substantively enacted
at the end of the reporting period in the country
where the Company generates taxable income.
Management periodically evaluates positions
taken in tax returns with respect to situations
in which applicable tax regulation is subject to
interpretation. It establishes provisions where
appropriate on the basis of amounts expected to
be paid to the tax authorities.

Deferred Tax represents the effect of "timing
differences” between taxable income and
accounting income for the reporting period that
originate in one period and capable of reversal in
one or more subsequent periods. Deferred Tax
Assets are recognized only on reasonable certainty
of realization and on unabsorbed depreciation and
brought forward losses only on virtual certainty.

Deferred Tax assets are recognised for all
deductible temporary differences, unused tax

losses and carry forward tax credits only if it is
probable that future taxable amounts will be
available to utilise those temporary differences, tax
losses and tax credits.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred
tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset
where the entity has a legally enforceable right
to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability
simultaneously.

Current and deferred tax is recognised in the
Statement of Profit and Loss.