OOQ3SI MATERIAL ACCOUNTING POLICIES
a. Statement of Compliance:
The Company has prepared the financial statements
which comprise the balance sheet as at 31 March
2025, the statement of profit and loss, the statement
of cash flows and the statement of changes in equity
for the year ended 31 March 2025, and a summary of
the material accounting policies and other explanatory
information (together hereinafter referred to as “financial
statements”).
These financial statements are prepared in accordance
with the Indian Accounting Standards (“Ind AS”) as
per the Companies (Indian Accounting Standards)
Rules, 2015 notified under Section 133 of Companies
Act, 2013 (“the Act’’), read together with Rule 3 of
Companies (Accounting Standard) Rules, 2015, other
relevant provisions of the Act and guidelines issued by
the Securities and Exchange Board of India (SEBI), as
applicable.
b. Basis of preparation
The financial statements have been prepared on a going
concern basis under the historical cost basis except for
the following -
• Certain financial assets and liabilities have been
measured at fair value (refer accounting policy
regarding financial instruments); and
• Defined benefit plans - measured using actuarial
valuation.
The financial statements have been prepared using the
material accounting policies and measurement basis
summarised below. These were used throughout all
periods presented in the financial statements, except
where the Company had applied certain accounting
policies and exemptions upon transition to Ind AS.
Functional and presentation currency
The financial statements are prepared in Indian Rupees,
which is the Company’s functional and presentation
currency. All financial information presented in Indian
Rupees has been rounded to the nearest Lakhs, unless
otherwise stated.
Current versus non-current classification
The Company presents assets and liabilities in
the balance sheet based on current/non-current
classification. An asset is classified as current when it is:
• Expected to be realised or intended to 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 non-current.
A liability is classified as 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 the
settlement of the liability for at least twelve months
after the reporting period
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash and
cash equivalents. Deferred tax assets and liabilities are
classified as non-current assets and liabilities.
Based on the nature of business and the time between
the acquisition of assets for processing and their
realisation in cash and cash equivalents, the Company
has ascertained its operating cycle as not exceeding
twelve months for the purpose of current / non-current
classification of assets and liabilities.
c. Critical estimates and judgements
The preparation of financial statements in conformity
with Ind AS requires management to make estimates,
assumptions and exercise judgement in applying the
accounting policies that affect the reported amount of
assets, liabilities and disclosure of contingent liabilities
at the date of financial statements and the reported
amounts of income and expenses during the year.
The management believes that these estimates are
prudent and reasonable and are based upon the
management’s best knowledge of current events and
actions. Actual results could differ from these estimates
and differences between actual results and estimates
are recognised in the periods in which the results are
known or materialised.
Below is an overview of the areas that involved a
higher degree of judgement or complexity, and of items
which are more likely to be materially adjusted due to
estimates and assumptions turning out to be different
than those originally assessed.
• Useful lives of property, plant and equipment
and investment property - Property, plant and
equipment and investment property represent
a significant proportion of the asset base of the
Company. The charge in respect of periodic
depreciation is derived after determining an
estimate of an asset’s expected useful life and
the expected residual value at the end of its life.
The useful lives and residual values of Company’s
assets are determined by the management, based
on those prescribed under Schedule II to the Act,
at the time the asset is acquired and reviewed
periodically, including at each financial year end.
• Defined benefit obligation - The cost of post¬
employment benefits is determined using actuarial
valuations. The actuarial valuation involves making
assumptions about discount rates, future salary
increases and mortality rates. Due to the long term
nature of these plans, such estimates are subject to
significant uncertainty. The assumptions used are
disclosed in the notes to these financial statements.
• Fair value measurements - Management applies
valuation techniques to determine the fair value
of financial instruments (where active market
quotes are not available). This involves developing
estimates and assumptions consistent with how
market participants would price the instrument.
• Impairment of assets - In assessing impairment,
management estimates the recoverable amounts
of each asset (in case of non-financial assets) based
on expected future cash flows and uses an interest
rate to discount them. Estimation uncertainty
relates to assumptions about future cash flows and
the determination of a suitable discount rate.
• Income tax - Significant judgments are involved in
determining the provision for income tax, including
the amount expected to be paid or recovered in
connection with uncertain tax positions.
• Provisions - Provisions are recognised when the
Company has a present obligation as a result of
past event and it is probable that an outflow of
resources will be required to settle the obligation,
in respect of which a reliable estimate can be
made. Provisions (excluding retirement obligation
and compensated expenses) are not discounted to
its present value and are determined based on the
best estimate required to settle obligation at the
balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the
current best estimates.
• Right to Use assets and liabilities- Determination
of lease term for computation of lease liabilities
and right of use assets and discount rate used for
discounting the lease payments to compute the
present value of lease liabilities.
d. Revenue recognition
Revenue towards satisfaction of a performance obligation
is measured at the amount of transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of goods sold and
services rendered is net of variable consideration on
account of various discounts and schemes offered
by the Company as part of the contract. Revenue is
recognised only when it can be reliably measured and
it is probable that the economic benefits will flow to the
Company. Amount disclosed as revenue are reported
net of applicable taxes, which are collected on behalf
of the government or on behalf of third parties. The
following specific recognition criteria must also be met
before revenue is recognised:
i. Income from sale of movie tickets (Box office
revenue)
Revenue from sale of movie tickets is recognised
as and when the film is exhibited.
ii. Sale of food and beverages
Revenue from sale of food and beverages is
recognised upon passage of title to customers,
which coincides with their delivery to the customer.
iii. Advertisement revenue
Advertisement revenue is recognised as and when
advertisement are displayed at the cinema halls
and in accordance with the term of the agreement.
iv. Convenience fee
Convenience fee is recognised as and when the
movie tickets are sold on digital platforms. Further,
in case of fixed contracts with digital ticketing
partners, revenue is recognised on accrual basis in
accordance with the terms of the agreement.
v. Virtual print fees income
Revenue is recognised on an accrual basis
in accordance with the terms of the relevant
agreements.
vi. Revenue from gift vouchers
Non-refundable Gift cards and vouchers are sold to
customers, that give customers the right to receive
goods or services in the future. The prepayment
amount received from the customer is recognised
as unearned revenue liability. If a customer does
not exercise their right, this amount is recognised
as revenue in proportion to the pattern of
rights exercised by the customer as there is an
expectation that the Company will be entitled to
revenue and that it is considered highly probable
and a significant reversal will not occur in the future.
vii. Rental Income
Revenue from rent and common area maintenance
is recognised based upon the agreement, for the
period the property has been let out and when no
significant uncertainty exists regarding the amount
of consideration that will be derived. Ind AS 116
mandates straight lining of lease rental income,
only if the escalation rate is not in line with the
general inflation rate.
viii. Gaming income
Revenue from gaming is recognised as and when
the games are played by customers.
e. Other income
a) Other income is recognised when no significant
uncertainty as to its determination or realisation
exists.
b) Interest income is recognised using the effective
interest method.
c) Dividend income is accounted for when the right to
receive the income is established.
. Leases
i. The Company as Lessee
The right-of-use assets are initially recognised at
cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus
any initial direct costs less any lease incentives.
They are subsequently measured at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated on a straight¬
line basis over the lease term. Right of use assets
are evaluated for recoverability whenever events
or changes in circumstances indicate that their
carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost
to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not
generate cash flows that are largely independent
of those from other assets.
The lease liability is initially measured at amortised
cost at the present value of the future lease
payments. The lease payments are discounted
using the interest rate implicit in the lease or, if
not readily determinable, using the incremental
borrowing rates in the country of domicile of these
leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of
use asset if the Company changes its assessment
if whether it will exercise an extension or a
termination option.
Lease liability and Right-of-use asset have been
separately presented in the Balance Sheet and
lease payments have been classified as financing
cash flows.
ii. The Company as Lessor
The Company has recognised rental income on
straight line basis in the statement of profit and
loss in accordance with IND AS 116.
Income taxes
Tax expense recognised in statement of profit and
loss comprises the sum of deferred tax and current
tax not recognised in Other Comprehensive
Income (‘OCI’) or directly in equity.
Current tax
Current income-tax is measured at the amount
expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961. Current
income-tax relating to items recognised outside
statement of profit and loss is recognised outside
statement of profit and loss (either in OCI or in
equity).
Deferred tax
Deferred tax is provided on temporary differences
between the tax bases of assets and liabilities
and their carrying amounts for financial reporting
purposes at the balance sheet date. Deferred
tax liabilities are generally recognised in full for
all taxable temporary differences. Deferred tax
assets are recognised to the extent that it is
probable that the underlying tax loss, unused tax
credits or deductible temporary difference will
be utilised against future taxable income. This is
assessed based on the Company’s forecast of
future operating results, adjusted for significant
non-taxable income and expenses and specific
limits on the use of any unused tax loss or credit.
Unrecognised deferred tax assets are re-assessed
at each reporting date and are recognised to the
extent that it has become probable that future
taxable profits will allow the deferred tax asset to
be recovered.
Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised 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 the statement of profit and
loss is recognised outside the statement of profit
and loss (either in the OCI or in equity). Deferred
tax items are recognised in correlation to the
underlying transaction either in the OCI or directly
in equity.
Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
such amounts.
Minimum alternate tax
Minimum alternate tax (MAT) paid in accordance
with the tax laws gives rise to future economic
benefits in the form of adjustments of future income
tax liability. The same is considered as an asset if
there is convincing evidence that the Company will
pay normal income tax after the tax holiday period.
Accordingly, MAT credit is recognised as a deferred
tax asset in the balance sheet when it is probable
that the future economic benefits associated with
it will flow to the Company and the asset can be
measured reliably.
. 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. Recognition, initial measurement and
derecognition
Financial assets and liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instrument. 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 (other than financial assets and
financial liabilities at fair value through profit or
loss) are added to or deducted from the fair value
measured on initial recognition of financial assets
or financial liability. However, trade receivables that
do not contain a significant financing component
are measured at transaction price.
The transaction costs directly attributable to the
acquisition of financial assets and financial liabilities
at fair value through profit and loss are immediately
recognised in the statement of profit and loss.
A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is primarily derecognised (i.e.
removed from the Company’s balance sheet)
when:
• The rights to receive cash flows from the
asset have expired, or
• The Company has transferred its rights
to receive cash flows under an eligible
transaction.
A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires.
A financial guarantee contract is initially recognised
at fair value. If the guarantee is taken from an
unrelated party on a commercial basis, the initial
fair value is likely to equal the premium paid. If no
premium is paid, the fair value is determined using
a method that quantifies the economic benefit of
the guarantee to the holder.
ii. Subsequent Measurement
Non-Derivative Financial Instruments
Financial assets carried at amortised cost
A financial asset is subsequently measured at
amortised cost if it is held within a business model
whose objective is to hold the asset in order to
collect contractual cash flows and the contractual
terms of the financial asset give rise on specified
dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.
Financial assets at fair value through other
comprehensive income (FVOCI)
A financial asset is subsequently measured at
FVOCI if it is held within a business model whose
objective is achieved by both collecting contractual
cash flows and selling financial assets and the
contractual terms of the financial asset give rise
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.
Financial assets at fair value through profit or
loss (FVTPL)
A financial asset which is not classified in any of
the above categories are subsequently fair valued
through statement of profit or loss. At the end
of each subsequent reporting period, financial
guarantees are measured at the amount initially
recognised less cumulative amortisation, where
appropriate.
Financial liabilities
Financial liabilities are subsequently carried at
amortised cost using the effective interest method.
For trade and other payables maturing within one
year from the balance sheet date, the carrying
amounts approximate fair value due to the short
maturity of these instruments.
iii. Impairment of financial assets
The Company assesses at each date of balance
sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through a
loss allowance. The Company recognises lifetime
expected losses for all contract assets and / or all
trade receivables that do not constitute a financing
transaction. For all other financial assets, expected
credit losses are measured at an amount equal
to the twelve month expected credit losses or at
an amount equal to the life time expected credit
losses if the credit risk on the financial asset has
increased significantly since initial recognition.
h. Equity shares
Equity shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the
proceeds.
i. Cash and cash equivalents and cash flows
Cash and cash equivalents comprise cash on hand and
demand deposits, together with other current / short¬
term, highly liquid investments (original maturity less
than 3 months) that are readily convertible into known
amounts of cash and which are subject to an insignificant
risk of changes in value.
The Cashflow Statement of the Company is prepared
under ‘Indirect’ method as per Ind AS.
j. Property, plant and equipment
Property, plant and equipment are stated at cost less
accumulated depreciation and accumulated impairment
losses, if any. Cost includes inward freight and expenses
incidental to acquisition and installation, net of tax credits
up to the point the asset is ready for its intended use.
Subsequent expenditure is capitalised to the asset’s
carrying amount only when it is probable that future
economic benefits associated with the expenditure
will flow to the entity and the cost of the item can be
measured reliably. All other repairs and maintenance
costs are charged to the statement of profit and loss
when incurred.
Gains or losses arising on the disposal of property,
plant and equipment are determined as the difference
between the disposal proceeds and the carrying amount
of the assets, and are recognised in the statement of
profit and loss within ‘other income’ or ‘other expenses’
respectively.
k. Capital work-in-progress
Amount paid towards the acquisition of property,
plant and equipment and leasehold improvements
outstanding as of each reporting date and the cost
of property, plant and equipment and leasehold
improvements under construction and not ready for
intended use before such date are classified under
Capital work-in-progress. These assets are carried
at cost, comprising direct cost, related incidental
expenses and attributable interest.
l. Intangible assets
Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair
value as at the date of acquisition. Following initial
recognition, intangible assets are carried at cost
less any accumulated amortisation and accumulated
impairment losses, if any.
m. Intangible assets under development
Cost related to brand creation and development are
capitalised only when it increases the future economic
benefits embodied in the specific asset to which it
relates. The cost which can be capitalised include
the cost of material, direct labour, overhead cost that
are directly attributable to preparing the asset for its
intended use.
n. Depreciation
Depreciation is provided on property, plant and
equipment on pro rata basis for the period of use,
on the straight line method (SLM) as per the useful
life of the assets prescribed under Schedule II to the
Companies Act, 2013, except in the following cases,
where the management based on technical and internal
assessment considers life to be different than prescribed
under Schedule II. The management believes that
these estimated useful lives are realistic and reflect fair
approximation of the period over which the assets are
likely to be used.
The Company has estimated the residual value @ 5%
of original cost for all assets except for sound and
projections equipment’s.
Freehold land is not depreciated. Depreciation on
assets under construction commences only when the
assets are ready for their intended use.
Leasehold improvements are amortised on a straight¬
line basis over the estimated period of lease including
renewals or unexpired period of lease, whichever is
shorter.
Depreciation is not recorded on capital work-in-progress
until construction and installation are complete and the
asset is ready for its intended use.
Depreciation method, useful life and residual value are
reviewed periodically and, when necessary, revised. No
further charge is provided in respect of assets that are
fully written down but are still in use.
. Amortisation
Amortisation is provided on intangible assets on pro rata
basis for the period of use, on the straight line method
(SLM) as per the useful life of the assets estimated by
the management. Cost relating to purchased software
and software licenses are capitalised and amortised on
a straight-line basis over their estimated useful lives or
10 years whichever is lower.
Amortisation method, useful life and residual value are
reviewed periodically and, when necessary, revised. No
further charge is provided in respect of assets that are
fully written down but are still in use .
p. Investment in subsidiaries
Investment in subsidiaries are carried at cost less
accumulated impairment, if any. Where an indication
of impairment exists, the carrying amount of the
investment is assessed and written down immediately
to its recoverable amount. On disposal of investments
in subsidiaries the difference between net disposal
proceeds and the carrying amounts are recognised in
the Statement of Profit and Loss
q. Inventories
Inventories are valued as follows:
(a) Food and beverages
Lower of cost and net realisable value. Cost is
determined on weighted average basis.
(b) Stores and spares
Lower of cost and net realisable value. Cost is
determined on First In First Out (FIFO) basis.
r. Impairment of non-financial assets
The carrying amount of the non-financial assets are
reviewed at each balance sheet date if there is any
indication of impairment based on internal /external
factors. An impairment loss is recognised whenever
the carrying amount of an asset or a cash generating
unit exceeds its recoverable amount. The recoverable
amount of the assets (or where applicable, that of the
cash generating unit to which the asset belongs) is
estimated as the higher of its net selling price and its
value in use. Impairment loss is recognised in the
statement of profit and loss.
After impairment, depreciation is provided on the
revised carrying amount of the asset over its remaining
useful life. A previously recognised impairment loss
is increased or reversed depending on changes in
circumstances. However, the carrying value after
reversal is not increased beyond the carrying value that
would have prevailed by charging usual depreciation if
there were no impairment.
s. 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.
The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the
use of unobservable inputs.
All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
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
t. 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.
u. Foreign currency transaction and translations
Transactions in foreign currencies are initially recorded
in functional currency’s spot rates at the date the
transaction first qualifies for recognition. Monetary
assets and liabilities denominated in foreign currencies
remaining unsettled are translated at the functional
currency spot rates of exchange at the reporting
date. Exchange differences arising on settlement
or translation of monetary items are recognised in
Standalone Statement of Profit and Loss. Non-monetary
items that are measured in terms of historical cost in
a foreign currency are translated using the exchange
rate at the date of the initial transactions. Non-monetary
items measured at fair value in a foreign currency are
translated using the exchange rates at the date when
the fair value is determined. The gain or loss arising on
translation of non-monetary items measured at fair value
is treated in line with the recognition of the gain or loss
on the change in fair value of the item (i.e. translation
differences on items whose fair value gain or loss is
recognised in OCI or profit or loss are also recognised
in OCI or profit or loss, respectively).
v. Employee benefits
• Defined contribution plans
The Company contributes to statutory provident
fund in accordance with Employees Provident
Fund and Miscellaneous Provisions Act, 1952 that
is a defined contribution plan and contribution paid
or payable is recognised as an expense in the
period in which the employee renders services.
• Defined benefit plans
The Company’s gratuity benefit scheme is a
unfunded defined benefit plan. The Company’s
obligation in respect of the gratuity benefit scheme
is calculated by estimating the amount of future
benefit that employees have earned in return
for their services in the current and prior periods
recognised as a liability at the present value of the
defined benefit obligations at the balance sheet
date based on an actuarial valuation carried out
by an independent actuary using the Projected
Unit Credit Method. The discount rates used for
determining the present value of the obligations
under the defined benefit plan are based on the
market yields on government bonds as at the
balance sheet date.
Actuarial gains and losses arising from past
experience and changes in actuarial assumptions
are credited or charged to the statement of OCI
in the year in which such gains or losses are
determined. Re-measurement recognised in OCI is
reflected immediately in retained earnings and will
not be reclassified to Statement of Profit and Loss
in the subsequent period
• Other long-term employee benefits
Liability in respect of compensated absences is
estimated on the basis of an actuarial valuation
performed by an independent actuary using the
projected unit credit method. Actuarial gains and
losses arising from past experience and changes
in actuarial assumptions are charged to statement
of profit and loss in the year in which such gains or
losses are determined.
• Short-term employee benefits
Expense in respect of other short-term benefits
is recognised on the basis of the amount paid or
payable for the period during which services are
rendered by the employee.
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