SIGNIFICANT ACCOUNTING POLICIES:
(i) Basis of Accounting
The financial statements are prepared under the historical cost convention, except stated otherwise, on an
accrual basis and in accordance with generally accepted accounting principles in India, the applicable mandatory
Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the provisions of the Act.
The financial statements have been prepared and presented as per the requirement of Schedule III as notified
under Companies Act, 2013.
(ii) Use of Estimates
The preparation of financial statements requires judgments, estimates and assumptions to be made that affect
the reported amount of assets and liabilities including contingent liabilities on the date of the financial
statements and the reported amounts of revenue and expenses during the reporting period. Difference between
actual results andestimates are recognized in the period in which the results are known/materialized.
(iii) Fixed Assets
Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment loss thereon, if any. Cost
comprises of purchase price and any attributable cost of bringing the assets to its working conditions for its
intended use.
(iv) Depreciation and Amortization
Depreciation has been provided on the straight line method based on life assigned to each asset in accordance
with Schedule II of the Companies Act, 2013.
(v) Revenue Recognition
Sales (including Programs, Film Rights, and Merchandise) are recognized, when the significant risks and reward
have been transferred to the customer.
Revenue from services is recognized on the completion of the service.
(vi) Investments
Investments, which are readily realizable and intended to be held not more than one year from the date on which
such investments are made, are classified as current investment. All other investments are classified as long-term
investments.
Investments are value at cost. Diminution in the value of investments is considered only when such diminution
is other than temporary in nature.
(vii) Inventories
Inventories includes Films (under production), Film Rights, Music Rights, Story Rights, are stated at lower of cost
/unamortized cost or realizable value. Cost comprises acquisition / director production cost.
Inventories of merchandise are stated at lower of purchase cost or realizable value.
(viii) Employee Benefit
Employee benefits are recognized as expenses as and when these accrue.
(ix) Segment Reporting
The Company has presented Segment information on the basis of financial statements as permitted by
AccountingStandard-17.
(x) Taxes on Income
Tax expenses comprises of current tax and deferred tax.
Current tax is determined as the amount of tax payable in respect of the taxable income for the period under
provisions of the Income Tax Act, 1961.
Deferred tax assets and deferred tax liabilities are recognized at substantively enacted tax rates, subject to the
consideration of prudence, on timing difference, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one or more subsequent periods.
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