Basis of Preparation of Financial Statements

These financial statements of the Company have been prepared to comply in all material
respects with the Indian Accounting Standards (Ind AS) under the historical cost convention on
the accrual basis except for certain financial instruments which are measured at fair values, the
provisions of the Companies act, 2013, ('Act') (to the extent notified) and guidelines issued by
the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under section 133
of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016.The amounts disclosed in
the financial statements and notes have been rounded off to nearest lakhs as per the
requirement of schedule III.

Accounting policies have been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting standard requires a change
in the accounting policy hither to in use.

Disclosures under Ind AS are made only in respect of material items that will be useful to the
users of Financial Statements in making economic decisions.

The financial statements are presented in Indian currency (INR), being the functional and
presentation currency. Being the currency of the primary economic environment in which the
company operates.

All assets and liabilities have been classified as current or non-current in accordance with the
operating cycle criteria set out in Ind AS 1 Presentation of Financial Statements and Schedule
III to the Companies Act, 2013.

Current/ Non-Current Classification

An asset is classified as current when

1) It is expected to be realized or consumed in the Company's normal operating cycle;

2) It is held primarily for the purpose of trading;

3) It is expected to be realized within twelve months after the reporting period; or

4) If it is cash or cash equivalent, unless it is restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period

Any asset not confirming to the above is classified as non- current.

A liability is classified as current when

1) It is expected to be settled in the normal operating cycle of the Company;

2) It is held primarily for the purpose of trading;

3) It is expected to be settled within twelve months after the reporting period; or

4) The Company has no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.

Any liability not conforming to the above is classified as noncurrent.

a) Property, Plant and Equipment:

Property, Plant and Equipment (PPE) are stated at cost less accumulated depreciation and
accumulated impairment losses, if any. Cost includes all direct costs relating to acquisition

and installation of Property, Plant and Equipment and borrowing cost relating to qualifying
assets. 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.

Subsequent costs are included in the assets carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Company and the cost can be measured reliably. All other repair and
maintenance costs are recognised in the statement of profit or loss as incurred. The present
value of the expected cost for the decommissioning of an asset after its use is included in the
cost of the respective asset if the recognition criteria for a provision are met.

Depreciation is charged to statement of profit or loss so as to write off the cost of assets less
their residual values over their useful lives, using the straight-line method. The estimated
useful lives, residual values and depreciation method are reviewed at the Balance Sheet date,
with the effect of any changes in estimate accounted for on a prospective basis.

The estimated useful lives of the depreciable assets are as follows:

Class of Assets Estimated Useful Life

Plant and Equipment 5 years

Furniture and Fixtures 10 years

Vehicles 8 years

Computers and related Assets 3 years

Office Equipment 3 years

An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or
loss arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognized in the Statement of Profit and Loss.

b) Impairment of Property, Plant & Equipment:

Assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment. Assets that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount.

Recoverable amount is the higher of fair value less costs of disposal 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 assessments 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 (or cash-generating unit) is estimated to be less than
its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced
to its recoverable amount. An impairment loss is recognized immediately in the Statement
of Profit and Loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a
cash-generating unit) is increased to the revised estimate of its recoverable amount, but so
that the increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognized for the asset (or cash-generating
unit) in prior years. A reversal of an impairment loss is recognized immediately in Statement
of Profit and Loss.

c) Inventory

Inventory consists of investments in films and associated rights, including acquired rights
and advances to talent associated with film production, are stated at lower of cost /
unamortised cost or realisable value. Costs include production costs, overhead and
capitalized interest costs net of any amounts received from third party investors.

The cost of production of feature film will be claimed as a deduction in accordance with Rule
9A of Income Tax Rules, 1962.

d) Foreign Currency Translation:

Initial Recognition

On initial recognition, transactions in foreign currencies entered into by the company are
recorded in the functional currency (i.e India Rupees), by applying to the foreign currency
amount, the spot exchange rate between the functional currency and foreign currency at the
date of the transaction. Exchange differences arising on foreign exchange transactions settled
during the year are recognised in the statement of profit and loss.

Measurement of foreign currency items on reporting date

Foreign currency monetary items of the company are translated at the closing exchange
rates. Non-monetary items that are measured at historical cost in a foreign currency are
translated using the exchange rate at the date of transaction. Non-monetary items that are
measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value is measured. Exchange differences arising out of these translations
are recognised in the Statement of Profit and Loss.

The Company has adopted Appendix B to Ind AS 21- Foreign Currency Transactions and
Advance Consideration which clarifies the date of transaction for the purpose of determining
the exchange rate to use on initial recognition of the related asset, expense or income when
an entity has received or paid advance consideration in a foreign currency.

The company as a Lessee

The Company assesses whether a contract contains a lease, at inception of a contract. A
contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified asset, the Company assesses
whether :(i) the contract involves the use of an identified asset (ii) the Company has
substantially all of the economic benefits from use of the asset through the period of the
lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset
("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee,
except for leases with a term of twelve months or less (short-term leases) and low value
leases. For these short-term and low value leases, the Company recognizes the lease
payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements include the options to extend or terminate the lease before the
end of the lease term. ROU assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised.

The ROU assets are initially recognized 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.

ROU assets are depreciated from the commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying asset. ROU 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 cashflows that are largely
independent of those from other assets. In such cases, the recoverable amount is determined
for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized 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 ROU asset have been
separately presented in the Balance Sheet and lease payments have been classified as
financing cash flows.

The company as a Lessor

Leases for which the Company is a lessor is classified as a finance or operating lease.
Whenever the terms of the lease transfer substantially all the risks and rewards of owner
ship to the lessee, the contract is classified as a finance lease. All other leases are classified
as operating leases. When the Company is an intermediate lessor, it accounts for its interests
in the head lease and the sublease separately. The sublease is classified as a finance or
operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight-line basis over the term of
the relevant lease

Lease-hold land:

Leasehold land that normally has a finite economic life and title which is not expected to pass
to the lessee by the end of the lease term is treated as an operating lease.

The payment made on entering into or acquiring a leasehold land is accounted for as
leasehold land use rights and is amortized over the lease term in accordance with the pattern
of benefits provided.

f) Financial Instruments

1) Initial Recognition

The company recognizes financial assets and financial liabilities when it becomes a party
to the contractual provisions of the instrument. All financial assets and liabilities are
recognized at fair value on initial recognition, except for trade receivables which are
initially measured at transaction price. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities that are not at fair value
through statement of profit or loss, are added to the fair value on initial recognition.

2) Subsequent Measurement

i) 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.

ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive
income 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. Further, in cases where the
company has made an irrevocable election based on its business model, for its
investments which are classified as equity instruments, the subsequent changes in fair
value are recognized in other comprehensive income.

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 costs directly attributable to the acquisition of financial assets and
liabilities at fair value through profit or loss are immediately recognised in statement of
profit or loss.

iv) Investment in Subsidiaries

Investments in subsidiaries are carried at cost in accordance with Ind AS 27 Separate
Financial Statements less provision for diminution, wherever required.

v) Financial Liability

Financial liabilities are subsequently carried at amortized cost using the effective interest
method, except for contingent consideration recognized in a business combination which
is subsequently measured at fair value through profit and loss. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to short maturity of these instruments.

3) Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire or its transfers the financial asset and the transfer qualifies
for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is
derecognized from the company's balance sheet when the obligation specified in the
contract is discharged or cancelled or expires.

4) Impairment of Assets

Financial Assets (other than at fair value):

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

12-month expected credit losses or at an amount equal to the lifetime expected credit
losses if the credit risk on the financial asset has increased significantly since initial
recognition.

5) Fair value of Financial Instruments

In determining the fair value of its financial instruments, the company uses following
hierarchy and assumptions that are based on market conditions and risks existing at each
reporting date.

Fair value hierarchy:

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.

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