(a) Property, Plant and Equipment:

Under the previous GAAP (erstwhile Indian GAAP), Property Plant and Equipments, were carried in the
balance sheet at historical cost. The Company has elected to regard those values of property as deemed cost as
at April 1, 2016 (date of transition to Ind AS).

Recognition and De-recognition

Plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if
any. Such cost includes purchase price, taxes and duties, labour cost and other direct costs incurred up to the
date the asset is ready for its intended use.

When significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Likewise, when a major inspection is
performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as
incurred.

Projects under which assets are not ready for their intended use are shown as Capital Work-in-progress.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss
when the asset is de-recognised.

Subsequent Measurement (Depreciation)

Depreciation on property, plant and equipment is provided to the extent of depreciable amount on the Straight
Line (SLM) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to
the Companies Act, 2013.

Pursuant to the enactment of the Companies Act, 2013 (the Act), cost of leasehold improvements is being
amortised over the remaining period of lease of the premises. Plant and machinery - distribution equipment is
being depreciated over a period of 10 years.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.

(b) Leases:

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.

Company as a lessee

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding
liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised
immediately in profit and loss, unless they are directly attributable to qualifying assets, in which case they are
capitalized in accordance with the Company's general policy on the borrowing costs. Contingent rentals are
recognised as expenses in the periods in which they are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that
the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of
the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line
basis over the lease term.

(c) Intangible Assets:

Recognition and De-recognition:

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated
amortisation/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and
any cost directly attributable to bringing the asset to its working condition for the intended use and net
charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to
the intangible assets.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or
loss when the asset is derecognised.

Subsequent measurement (amortisation)

The cost of intangible asset is amortized over a period of its useful life from the date of its acquisition.
Computer software is being depreciated over a period of 5 years.

(D) CURRENT AND NON-CURRENT CLASSIFICATION:

The Company presents assets and liabilities in the balance sheet based on current/noncurrent classification.
An asset is current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• 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 noncurrent.

A liability is current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• there is no unconditional right to defer settlement of the liability for at least twelve months after the
reporting period. All other liabilities are classified as noncurrent.

The Company recognises twelve months period as its operating cycle.

(e) Development Expenses:

Revenue expenditure pertaining to pre-production activity is charged to the Profit and Loss Statement.
Development costs of shows are charged to the Profit and Loss Statement unless a show's feasibility has been
established, in which case such expenditure is recognised as work-in-progress.

(f) Borrowing Cost:

Borrowing costs that are directly attributable to acquisition, construction or production of a qualifying asset are
capitalised as part of the cost of that asset when it is probable that they will result in future economic benefits to
the enterprise and the costs can be measured reliably.

Other borrowing costs are recognised as an expense in the year in which they are incurred.

(g) Inventories:

Items of inventories are measured at lower of cost and net realisable value. . Cost of inventories comprises of
cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes
incurred in bringing them to their respective present location and condition.

(h) Impairment of Non-Financial Assets:

At each balance sheet date, the Company assesses whether there is any indication that any property, plant and
equipment and intangible assets with finite lives may be impaired. If any such impairment exists the recoverable
amount of an asset is estimated to determine the extent of impairment, if any. Where 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.

Recoverable amount is the higher of fair value less costs to sell 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 assessment 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 is estimated to be less than its carrying amount, the carrying amount of the
asset is reduced to its recoverable amount. An impairment loss is recognized immediately in the statement of
operations.