24 A Significant Accounting Policies
1 Basis Of Accounting
The financial statements have been prepared and presented in accordance with Indian Accounting Standards (Ind AS), as prescribed under section 133 of Companies Act, 2013. 3(‘the Act’) (to the extent notified) read with the Rule 3 of the Companies (Indian Accounting Standard) Rules 2015 and Companies (Indian Accounting Standards)
Amendment Rules, 2016 and guidelines issued by the Securities and Exchange Board of India(SEBI). The financial statements are prepared on going concern, accrual and historical cost basis.
The Company has adopted IndAS and the adoption was carried out in accordance with Ind AS101 First time adoption of Indian Accounting Standards.
2 Use Of Estimates
The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period.
3 Classification of Assets and Liabilities as Current and Non Current
All Assets and Liabilities have been classified as current or noncurrent. Based on the nature of product & activities of the Company and their realization in cash and cash equivalent, the Company has determined its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities. Deferred tax assets and deferred tax liabilities are classified as non-current assets and liabilities.
4 Revenue Recognition
(i) Income From Sale of Goods & Shares :
Revenue from sale of goods is recognised when all the significant risks and rewards of the goods have been passed on to the buyer ,usually on the delivery of the goods. the amount of revenue and costs associated with the transaction can be measured reliably and no significant uncertainty exists regarding the amount of consideration that will be derived from the sales of goods. Sale of shares is being accounted on the basis of date of setlement of transaction.
(ii) Income From Other Operations:
Income from other operations is recognised on accrual basis and as per the terms of the agreement.
(iii) Income from Interest:
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 recognised on time proportion basis taking into account the amount outstanding and the applicable rate of interest.Interest income is included under the head "other income" in the statement of profit and loss.
(iv) Dividends
Dividend Income is recognised when the company's right to receive dividend is established by the reporting date
5 Property, Plant & Equipments
(i) Tangible Assets:
Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable costs of bringing the asset to its working condition for the intended use.Any trade discounts and rebates are deducted in ariving at the purchase price.
IND AS 101 permits first time adopters to continue with the carrying value for all of its Property, Plant & Equipments as recognised in the financials statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the Company had elected to measure all of its Property, Plant & Equipments at their previous GAAP carrying value as at 31 st March, 2018.
The management's estimate of useful lives are in accordance with Schedule II to the Companies Act, 2013, other than the following asset classes, based on the Company's expected usage pattern supported by technical assessemnt:
Asset Class Useful lives
Furniture and fixtures 10 years
Office equipmets 5 years
Vehicles 8 years
(ii) Intangible Assets:
Intangible assets aquired seperately are measured on initial recognition at cost.Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
6 Depreciation/ Amortisation
All Fixed assets are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation. The Company provides depreciation on straight line basis on the basis of useful lives of assets as specified in Schedule II to the Companies Act, 2013. Depreciation on assets sold / purchased during the year is proportionately charged.
7 Borrowing Costs
(i) Borrowing Cost that are directly attributable to the acquisition, construction or production of qualifying asset are capitalised as part of cost of such asset.
Borrowing cost other than those directly attributable to the acquisition, construction or production of a qualifying asset are recognized as expense in the period in which they are
(ii) incurred.
8 Financial instruments
Financial asssets and liabilites are recognised when the Company becomes aparty 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
(i) financial liabilities ar fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liablity.
(ii) Financial assets at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding and selling financial assets.
(iii) Financial assets at fair value through profit or loss
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction cost directly attributable to the acquisition of financial assets and liabilities at fair vlaue through profit or loss are immediately recognised in profit or loss.
9 Investments
Long -term Investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary
10 Inventories
Inventories are valued at cost or net realizable value-Whichever is lower.
11 Employee Benefits:
(i) Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, bonus, compensated absences, ex Benefits such as salaries, wages, bonus, compensated absences, ex gratia, leave encashment and leave travel allowance is recognised in the period in which the employees renders related services.
(ii) Long Term Employee Benefits
The Company’s contribution to Provident Fund Scheme, Employee’s State Insurance Scheme are considered as defined contribution plans and are recognised as an expense to the statement of profit and loss, based on the amount of contribution required to be made and when services are rendered by employees.
12 Taxation
(i) Tax expense comprises current and deferred tax.
(ii)
Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and the tax Laws prevailing in the respective Tax jurisdiction where the Company operates.the tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.Current income tax relating to the items recognised directly in equity is recognised in equity and not in the statement of profit and loss.
(iii) Deferred income taxes reflect the impact of timing differences between the taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years.Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.Deferred income tax relating to the items recognised directly in equity is recognised in equity and not in the statement of profit and loss.
(iv) Deferred Tax Liabilities are recognised for all taxable timing differences.
(v) Deferred Tax Assets are recognised for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
(vi)
The carrying amount of deferred tax assets are reviewed at each reporting date.The company writes down the carrying amount of deferred Tax asset to the extent that it is no longer reasonbly certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised.Any such write down is reversed to the extent that it becomes resonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.
(vii) Current and deferred tax for the year :
Current and deferred tax are recognised in profit and loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directlty in equity respectively. where current tax or deferred tax arises from the inital accounting for a business combination, the tax effect is included in the accounting for the business combination.
13 Provisions,Contingent Liabilities And Contingent Assets
(i) Provisions are recognised only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made.
(**) Contingent liability is disclosed for
(1) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or
(2) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation can not be made.
(iii) Contingent Assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.
14 Segment Reporting
(i) Business Segments have been identified on the basis of nature of products/services.The Company's operations relate to trading of goods, trading in shares, selling of film rights and consultancy.
(ii) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "unallowable".
(iii) Segment Assets and Segment Liabilities reprsents assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that can not be alloted to a segment on reasonable basis, have been disclosed as "unallowable"
15 Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists ,the Company estimates the recoverable amount of the assets. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
16 Earnings Per Share
Earnings per share (Basic / Diluted) is calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average numbers of equity shares outstanding during the period.
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