Universal Arts Ltd. कंपली की लेखा नीति

Mar 31, 2025

(a) Basis of Preparation & Presentation

The financial statements are prepared on the accrual basis of accounting and in accordance with the
Indian Accounting Standards (hereinafter referred to as the Ind AS) as prescribed under Section 133 of
the Companies Act, 2013 (the Act) (as amended) and other relevant provisions of the Act.

The Financial statements have been prepared as a going concern under the historical cost convention.

The Financial statements are presented in Indian Rupees (“INR”) and all values are rounded to the
nearest Thousand, except otherwise stated as per the requirement of Schedule III.

(b) Classification of Current and Non-Current

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non-Current
classification.

An asset is treated as current when it is:

i) Expected to be realized or intended to be sold or consumed in normal operating cycle,

ii) Held primarily for the purpose of trading,

iii) Expected to be realized within twelve months after the reporting period, or

iv) Cash or Cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

i) It is expected to be settled in normal operating cycle,

ii) It is held primarily for the purpose of trading,

iii) It is due to be settled within twelve months after the reporting period, or

iv) There is no unconditional right to determine the settlement of the liability for at least twelve months
after the reporting period.

The Company classifies all other liabilities as non - current.

(c) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original 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.

(d) Taxes on Income
Current Tax

Income tax expense represents the sum of current tax and deferred tax and includes any adjustments
related to past periods in current and /or deferred tax adjustments that may become necessary due to
certain developments or reviews during the relevant year. Current income tax is based on the taxable
income and calculated using the applicable tax rates.

Deferred Tax

Deferred tax is provided using the Balance sheet method on temporary differences between the tax bases
of assets and liabilities and their carrying amounts for the financial reporting purposes at the reporting
date. The carrying amount of deferred tax assets is reviewed at the end of reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax asset to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss in correlation to the underlying transaction either in OCI
or directly in equity.

Deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

(e) Revenue Recognition.

In Case of Sale of rights, the company recongnizes the income When all the following criteria are met:

1) A license agreement is signed by both the parties.

2) The Licensee is able to freely exploit the rights granted.

3) Effective date of grant of rights to the licensee has commenced as per the agreement or complete
payment with respect to the rights has been recieved,whichever is earlier.

4) The Enterprise has no remaining performance obligations.

5) The arrangement is fixed and determinable.

6) Collection of fee is reasonably assured.

Other Stream of income

In all other cases, revenue is recognized when the company has the undisputable right to receive the
income.

(f) Purchase of Movie rights

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

• A license agreement is signed by both the parties.

• The Enterprise is able to freely exploit the rights granted.

• Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete
payment for the same has been made, whichever is earlier.

• The Seller has no remaining performance obligations.

• The arrangement is fixed and determinable.

(g) Provisions

A provision is recognized when the Company has a present obligation Legal or Constructive that is
reasonably estimated and it is probable that an outflow of economic benefits will be required to settle the
obligation. These estimates are reviewed at each Balance Sheet date and adjusted to reflect the current
best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognized as a finance cost.

(h) Earnings per Share

Basic earnings per share are calculated by dividing the net profit/ loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year

For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for
the effects of diluted potential equity shares, if any.

(i) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the financial statements.

(j) Financial Instruments

A Financial Instruments (assets and liabilities) is defined as any contract that gives rise to a financial
asset of one entity and a financial liability or equity instrument of another entity.

Financial Instruments are recognised when the Company becomes a party to the contractual provisions of
the instruments. For tradable securities, the company recognizes the financial instruments on settlement
date.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

Financial Assets:

Financial assets include cash, or an equity instrument of another entity, or a contractual right to receive
cash or another financial asset from another entity. Few examples of financial assets are loan receivables,
investment in equity and debt instruments, trade receivable and cash and cash equivalents.

Financial assets are classified into various measurement categories as per Ind AS 109 “Financial
Instruments” and Ind AS 32” Financial Instruments: Presentation” as follows.

i) “Financial Assets measured at Amortized Cost:

A financial asset is subsequently measured at Amortized Cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the Financial Asset give rise on specified dated to cash flows thar are solely payments of
principal and interest on the principal amount outstanding.

ii) “Debt instruments at Fair Value Through Other Comprehensive Income (FVTOCI):

A debt instrument is subsequently measured at FVTOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling financial assets and
contractual terms of financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

Debt instruments included within the FVTOCI category are measured at each reporting date at fair
value with such changes being recognized in Other Comprehensive Income (OCI).

The interest income on these assets is recognized in the Statement of Profit and Loss.

iii) Equity instruments at Fair Value Through Other Comprehensive Income (FVTOCI):

An unquoted equity asset, not held for trading, is subsequently measured at FVTOCI at each reporting
date at fair value with such changes being recognized in the Statement of Profit and Loss.

iv) Equity instruments through Fair Value Through Profit and Loss Account (FVTPL):

Equity investments that are not classified to be measured through FVTOCI are measured through
FVTPL. Subsequent changes in fair value are recognized in the Statement of Profit and Loss.

The Company derecognizes a financial asset when the contractual cash flows from the asset expires
or it transfers its rights to receive contractual cash flows from the financial asset in a transaction in
which substantially all the risks and rewards of ownership are transferred. Any interest in transferred
financial assets that is created or retained by the Company is recognized as a separate asset or
liability.

On derecognition of the asset, cumulative gains or loss previously recognized in OCI is reclassified
from OCI to the Statement of Profit and Loss.

v) Investments in associate companies:

Investment in equity of associate companies are valued at cost less impairment, if any.

vi) Financial Liabilities and Equity Instruments:

An equity instruments is any contract that evidences a residual interest in the assets of an entity after
deducting all if its liabilities. Equity instruments issued by the company is recognized at the proceeds
received, net of directly attributable transaction cost.

Financial liabilities are liabilities that represent a contractual obligation to deliver cash or another
financial assets to another entity, or a contract that may or will be settled in the entity’s own quity
instruments. Trade payables, debt securities and other borrowings and subordinated debts are various
types of financial liabilities.

After initial recognition, all financial liabilities are subsequently measured at amortized cost. Any gains
or losses arising on derecognized of liabilities are recognized in the Statement of Profit and Loss.

A Financial liability is derecognized when the obligation under the liability is discharged, cancelled or
expired.

(k) Fair Value Measurement

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:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability The
principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use. All assets and liabilities for which fair
value is measured or disclosed in the financial statements are categorized within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as
a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting year.

3 Critical Accounting Judgements and Key Sources of Estimation Uncertainty

The Preparation of Company’s financial Statements requires management to make judgements, estimates
and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the
accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes
that require a material adjustments to the carrying amount of assets or liabilities affected in next financial
years.

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Mar 31, 2024

2 Summary of Significant Accounting Policies

(a) Basis of Preparation & Presentation

The financial statements are prepared on the accrual basis of accounting and in accordance with the
Indian Accounting Standards (hereinafter referred to as the Ind AS) as prescribed under Section 133 of
the Companies Act, 2013 (the Act) (as amended) and other relevant provisions of the Act.

The Financial statements have been prepared as a going concern under the historical cost convention.
The Financial statements are presented in Indian Rupees (“INR”) and all values are rounded to the
nearest Thousand, except otherwise stated as per the requirement of Schedule III.

(b) Classification of Current and Non-Current

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non-Current
classification.

An asset is treated as current when it is:

i) Expected to be realized or intended to be sold or consumed in normal operating cycle,

ii) Held primarily for the purpose of trading,

iii) Expected to be realized within twelve months after the reporting period, or

iv) Cash or Cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

i) It is expected to be settled in normal operating cycle,

ii) It is held primarily for the purpose of trading,

iii) It is due to be settled within twelve months after the reporting period, or

iv) There is no unconditional right to determine the settlement of the liability for at least twelve months
after the reporting period.

The Company classifies all other liabilities as non - current.

(c) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original 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.

(d) Taxes on Income
Current Tax

Income tax expense represents the sum of current tax and deferred tax and includes any adjustments
related to past periods in current and /or deferred tax adjustments that may become necessary due to
certain developments or reviews during the relevant year. Current income tax is based on the taxable
income and calculated using the applicable tax rates.

Deferred Tax

Deferred tax is provided using the Balance sheet method on temporary differences between the tax bases
of assets and liabilities and their carrying amounts for the financial reporting purposes at the reporting
date. The carrying amount of deferred tax assets is reviewed at the end of reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of

the deferred tax asset to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss in correlation to the underlying transaction either in OCI
or directly in equity.

Deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

(e) Revenue Recognition.

In Case of Sale of rights, the company recongnizes the income When all the following criteria are met:

1) A license agreement is signed by both the parties.

2) The Licensee is able to freely exploit the rights granted.

3) Effective date of grant of rights to the licensee has commenced as per the agreement or complete
payment with respect to the rights has been recieved,whichever is earlier.

4) The Enterprise has no remaining performance obligations.

5) The arrangement is fixed and determinable.

6) Collection of fee is reasonably assured.”

Other Stream of income

In all other cases, revenue is recognized when the company has the undisputable right to receive the
income.

(f) Purchase of Movie rights

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

• A license agreement is signed by both the parties.

• The Enterprise is able to freely exploit the rights granted.

• Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete
payment for the same has been made, whichever is earlier.

• The Seller has no remaining performance obligations.

• The arrangement is fixed and determinable.

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Mar 31, 2015

1. Basis of preparation of Financial Statements

a) These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 2013 and the RBI guidelines/regulations to the extent applicable.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles.

c) The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The Difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assets are stated at cost less accumulated depreciation.

b) Till year ended 30th June, 2014, depreciation rates as prescribed under Schedule XIV were taken for the purpose of charging depreciation on fixed assets. As per the newly amended Companies Act, 2013 company is now required to charge Depreciation on fixed assets on the basis of useful life of assets and as per Schedule II of the said Act. Further as per guidance note issued by ICAI, depreciation rate is calculated for existing assets considering its residual value and remaining useful life and depreciation on such assets is charged on written down value method.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date.

4. Investments

The Investments are stated at cost. Provision for diminution in' the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories and films include raw stock (Tapes and cassettes etc.) TV programmers/ Episodes of TV serials under production and are valued at cost or net realizable value, whichever is lower.

6. Revenue Recognition.

i) In the case of movies telecasted on Doordarshan, the revenue is recognized in the year in which Doordarshan sanctions the payment.

ii) In case of sale of other rights, the Company recognizes the income when all the following criteria are met:

* A license agreement is signed by both the parties;

* The licensee is able to freely exploit the rights granted;

* Effective date of grant of rights to the licensee has commenced as per the agreement or complete payment with respect to the rights has been received, whichever is earlier;

* The Enterprise has no remaining performance obligations;

* The arrangement is fixed and determinable;

* Collection of the fee is reasonably assured;

* All the essential deliverables to the licensee as per the agreement are completed.

Other streams of income

In all other cases, revenue is recognized when the Company has the undisputable right to receive the income.

7. Purchase of Movie rights.

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

* A license agreement is signed by both the parties;

* The Enterprise is able to freely exploit the rights granted;

* Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete payment for the same has been made, whichever is earlier;

* The Seller has no remaining performance obligations;

* The arrangement is fixed and determinable;

* All essential deliverables to the Enterprise as per the agreement are completed.

8. Employees Retirement and other benefits

The Company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

9. Contingent Liabilities

Contingent liabilities are not provided for and are disclosed by way of notes, if any.

10. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the books.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

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Jun 30, 2014

1. Basis of preparation of Financial Statements

a) The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 and the applicable accounting standards issued by the Institute of Chartered Accountants of India.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles.

c) The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The Difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assets are stated at cost less accumulated depreciation.

b) Depreciation on fixed assets provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1956.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date.

4. Investments

The Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories and films include raw stock (Taps and cassettes etc.) TV programmers/ Episodes of TV serials under production and are valued at cost or net realizable value, whichever is lower.

6. Revenue Recognition

i) In the case of movies telecasted on Doordarshan, the revenue is recognized in the year in which Doordarshan sanctions the payment.

ii) In case of sale of other rights, the Company recognizes the income when all the following criteria are met:

* A license agreement is signed by both the parties;

* The licensee is able to freely exploit the rights granted;

* Effective date of grant of rights to the licensee has commenced as per the agreement or complete payment with respect to the rights has been received, whichever is earlier;

* The Enterprise has no remaining performance obligations;

* The arrangement is fixed and determinable;

* Collection of the fee is reasonably assured;

* All the essential deliverables to the licensee as per the agreement are completed.

Other streams of income

In all other cases, revenue is recognized when the Company has the undisputable right to receive the income.

7. Purchase of Movie rights.

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

* A license agreement is signed by both the parties;

* The Enterprise is able to freely exploit the rights granted;

* Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete payment for the same has been made, whichever is earlier;

* The Seller has no remaining performance obligations;

* The arrangement is fixed and determinable;

* All essential deliverables to the Enterprise as per the agreement are completed.

8. Employees Retirement and other benefits

The Company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

9. Contingent Liabilities

Contingent liabilities are not provided for and are disclosed by way of notes, if any

10. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the books.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

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Jun 30, 2013

1. Basis of preparation of Financial Statements

a) The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 and the applicable accounting standards issued by the Institute of Chartered Accountants of India.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles.

c) The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The Difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assets are stated at cost less accumulated depreciation.

b) Depreciation on fixed assets provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1956.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date.

4. Investments

The Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories and films include raw stock (Taps and cassettes etc.) TV programmers/ Episodes of TV serials under production and are valued at cost or net realizable value, whichever is lower.

6. Revenue Recognition

i) In the case of movies telecasted on Doordarshan, the revenue is recognized in the year in which Doordarshan sanctions the payment. ii) In case of sale of other rights, the Company recognizes the income when all the following criteria are met:

- A license agreement is signed by both the parties;

- The licensee is able to freely exploit the rights granted;

- Effective date of grant of rights to the licensee has commenced as per the agreement or complete payment with respect to the rights has been received, whichever is earlier;

- The Enterprise has no remaining performance obligations;

- The arrangement is fixed and determinable;

- Collection of the fee is reasonably assured;

- All the essential deliverables to the licensee as per the agreement are completed. Other streams of income

In all other cases, revenue is recognized when the Company has the undisputable right to receive the income.

7. Purchase of Movie rights.

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

- A license agreement is signed by both the parties;

- The Enterprise is able to freely exploit the rights granted;

- Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete payment for the same has been made, whichever is earlier;

- The Seller has no remaining performance obligations;

- The arrangement is fixed and determinable;

- All essential deliverables to the Enterprise as per the agreement are completed.

8. Employees Retirement and other benefits

The Company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

9. Contingent Liabilities

Contingent liabilities are not provided for and are disclosed by way of notes, if any.

10. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the books.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

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Jun 30, 2012

1. Basis of preparation of Financial Statements

a) The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 and the applicable accounting standards issued by the Institute of Chartered Accountants of India.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles.

c) The preparation of financial statements requires estimates and assumption to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assets are stated at cost less accumulated depreciation.

b) Depreciation on fixed assets provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1956.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date. .

4. Investments

The Investments are.stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories include Raw stock (Taps and cassettes etc.) TV programmers/ Episodes of TV serials under production and are valued at cost or net realizable value, whichever is lower. The inventory of film have been valued at cost.

6. Revenue Recognition. .

i) In the case of movies telecasted on Doordarshan, the revenue is recognized in the year in which Doordarshan sanctions the payment.

ii) In case of sale of other rights, the Company recognizes the income when all the following criteria are met:

- A license agreement is signed by both the parties;

- The licensee is able to freely exploit the rights granted;

- Effective date of grant of rights to the licensee has commenced as per the agreement or complete payment with respect to the rights has been received, whichever is earlier;

- The Enterprise has no remaining performance obligations;

0 The arrangement is fixed and determinable; -

- Collection of the fee is reasonably assured;

- All the essential deliverables to the licensee as per the agreement are completed.

Other streams of income

In all other cases, revenue is recognized when the Company has the undisputable right to receive the income.

Company has restated its accounting policies considering the nature of business. However such restatement does not affect the statement of profit & loss account and balance sheet of the Company.

7. Purchase of Movie rights.

The Enterprise recognizes purchase of movie rights when the all the below mentioned criteria are met:

- A license agreement is signed by both the parties; -

- The Enterprise is able to freely exploit the rights granted;

- Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete, payment for the same has been made, whichever is earlier;

- The Seller has no remaining performance obligations;

- The arrangement is fixed and determinable;

- All essential deliverables to the Enterprise as per the agreement are completed.

8. Employees Retirement and other benefits

The Company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

9. Contingent Liabilities . Contingent liabilities are not provided for and are disclosed by way of notes.

10. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the books.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to statement of Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss ' ' recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

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Jun 30, 2010

1. Basis of preparation of Financial Statements

a) The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 and the applicable accounting standards issued by Institute of Chartered Accountants of India.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.

c) The preparation of financial statements requires estimates and assumption to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The Difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assess stated at cost less accumulated depreciation.

b) Portal & content rights has been capitalized and has been amortized over the estimated economical life of the content.

c) Depreciation on fixed assets provided on straight-line method at the; rates prescribed by Schedule XIV of the Companies Act, 1956.

d) Portal & contents rights are amortized over the period of three years.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date.

4. Investments

The Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories include Raw stock (Taps and cassettes etc.) TV programmers/ Episodes of TV serials under production are valued at cost or net realizable value, whichever is lower. The inventory of film have been valued at cost.

6. Revenue

Revenue/ Income are accounted as and when the relevant episode of the program is or film is delivered to the . channel. Cost/Expenditure are generally accounted for on accrual baisis as they are incurred.

7. Employees Retirement and other benefits

The company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

8. Contingent Liabilities

Contingent liabilities are not provided for and are disclosed by way of notes.

9. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benofits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the; books.

10. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.