h. Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a
result of a past event, it is more likely than not that an outflow of resources will be required to
settle the obligations and can be reliably measured. Provisions are measured at Management’s
best estimate of the expenditure required to settle the obligations at the balance sheet date. If the
effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflect, when appropriate, the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is recognised as a finance cost.
i. Foreign Currency
Transactions in foreign currencies are translated at the rates of exchange prevailing on the dates
of the transactions. Monetary assets and liabilities in foreign currencies are translated at the
prevailing rates of exchange at the balance sheet date. Non-monetary items that are measured at
historical cost in a foreign currency are translated at the exchange rate at the date of the
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 was determined.
Any exchange differences arising on the settlement of monetary items or on translating monetary
items at rates different from those at which they were initially recorded are recognized in the
Statement of profit and loss in the period in which they arise. Non-monetary items carried at fair
value that are denominated in foreign currencies are translated at rates prevailing at the date
when the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated.
The Company’s functional currency and the presentation currency is same i.e. Indian Rupee (')
j. Financial Assets
Financial assets are divided into the following categories:
• financial assets carried at amortised cost
• financial assets at fair value through other comprehensive income
• financial assets at fair value through profit and loss;
Financial assets are assigned to the different categories by management on initial recognition,
depending on the nature and purpose of the financial assets. The designation of financial assets
is re-evaluated at every reporting date at which a choice of classification or accounting treatment
is available. Financial Assets like Investments in Subsidiaries are measured at Cost as allowed by
Ind-AS 27 - Separate Financial Statements and hence are not fair valued.
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. These are non-derivative financial
assets that are not quoted in an active market. Loans and receivables (including trade and other
receivables, bank and cash balances) are measured subsequent to initial recognition at amortized
cost using the effective interest method, less provision for impairment. Any change in their value
through impairment or reversal of impairment is recognized in the Statement of profit and loss.
In accordance with Ind AS 109: Financial Instruments, the Company recognizes impairment loss
allowance on trade receivables and content advances based on historically observed default rates.
Impairment loss allowance recognized during the year is charged to Statement of profit and loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income are non-derivative financial
assets 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
A financial asset which is not classified in any of the above categories are subsequently fair valued
through profit or loss. It includes non-derivative financial assets that are either designated as such
or do not qualify for inclusion in any of the other categories of financial assets. Gains and losses
arising from investments classified under this category is recognized in the Statement of profit
and loss when they are sold or when the investment is impaired.
In the case of impairment, any loss previously recognized in other comprehensive income is
transferred to the Statement of profit and loss. Impairment losses recognized in the Statement of
profit and loss on equity instruments are not reversed through the Statement of profit and loss.
Impairment losses recognized previously on debt securities are reversed through the Statement
of profit and loss when the increase can be related objectively to an event occurring after the
impairment loss was recognized in the Statement of profit and loss.
When the Company considers that fair value of financial assets can be reliably measured, the fair
values of financial instruments that are not traded in an active market are determined by using
valuation techniques. The Company applies its judgment to select a variety of methods and make
assumptions that are mainly based on market conditions existing at each balance sheet date.
Equity instruments measured at fair value through profit or loss that do not have a quoted price
in an active market and whose fair value cannot be reliably measured are measured at cost less
impairment at the end of each reporting period.
An assessment for impairment is undertaken at least at each balance sheet date.
A financial asset is derecognized only where the contractual rights to the cash flows from the asset
expire or the financial asset is transferred and that transfer qualifies for derecognition. A financial
asset is transferred if the contractual rights to receive the cash flows of the asset have been
transferred or the Company retains the contractual rights to receive the cash flows of the asset
but assumes a contractual obligation to pay the cash flows to one or more recipients. A financial
asset that is transferred qualifies for derecognition if the Company transfers substantially all the
risks and rewards of ownership of the asset, or if the Company neither retains nor transfers
substantially all the risks and rewards of ownership but does transfer control of that asset.
k. Financial liabilities
Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss’
or 'other financial liabilities’. Financial liabilities are subsequently measured at amortized cost
using the effective interest method or at fair value through profit or loss.
Financial liabilities are classified as at fair value through profit or loss when the financial liability
is held for trading such as a derivative, except for a designated and effective hedging instrument,
or if upon initial recognition it is thus designated to eliminate or significantly reduce
measurement or recognition inconsistency or it forms part of a contract containing one or more
embedded derivatives and the contract is designated as fair value through profit or loss.
Financial liabilities at fair value through profit or loss are stated at fair value. Any gains or losses
arising of held for trading financial liabilities are recognized in Statement of profit and loss. Such
gains or losses incorporate any interest paid and are included in the “other gains and losses” line
item.
Other financial liabilities (including borrowing and trade and other payables) are subsequently
measured at amortized cost using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a financial liability
and of allocating interest expense over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash payments (including all fees and points paid or
received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the financial liability, or a shorter period, to
the net carrying amount on initial recognition.
A financial liability is derecognized only when the obligation is extinguished, that is, when the
obligation is discharged or cancelled or expires. Changes in liabilities’ fair value that are reported
in profit or loss are included in the Statement of profit and loss within finance costs or finance
income.
l. Taxes
Taxation on profit and loss comprises current tax and deferred tax. Tax is recognized in the
Statement of profit and loss except to the extent that it relates to items recognized directly in
equity or other comprehensive income in which case tax impact is also recognized inequity or
other comprehensive income.
Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws
that have been enacted at the balance sheet date along with any adjustment relating to tax payable
in previous years.
Deferred income tax is provided in full, using the liability method, on temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. Deferred income tax is provided at amounts expected to be paid (or recovered) using
the tax rates and laws that have been enacted or substantively enacted at the balance sheet date
and are expected to apply when the related deferred income tax asset is realized or the deferred
income tax liability is settled.
Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right
to set off assets against liabilities representing current tax and where the deferred tax assets and
the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.
Minimum alternate tax (MAT) paid in a year is charged to the Statement of profit and loss as
current tax. MAT credit entitlement is recognised as an asset only when and to the extent there is
convincing evidence that the Company will pay normal income tax during the specified period,
which is the period for which MAT credit is allowed to be carried forward. Such asset is reviewed
at each balance sheet date and the carrying amount of the MAT credit asset is written down to the
extent there is no longer a convincing evidence to the effect that the Company will pay normal
income tax during the specified period.
m. Earnings per share
Basic earnings per share is computed using the weighted average number of ordinary shares
outstanding during the period. Diluted earnings per share is computed by considering the impact
of the potential issuance of ordinary shares, on the weighted average number of shares
outstanding during the period except where the results would be ant dilutive.
n. Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term
highly liquid investments which are readily convertible into known amounts of cash and are
subject to insignificant risk of changes in value. Bank overdrafts are shown within borrowings in
current liabilities on the balance sheet.
Deposits held with banks as security for overdraft facilities are included in restricted deposits
held with bank.
o. Segment reporting
Ind-AS 108 Operating Segments (“Ind-AS 108”) requires operating segments to be identified on
the same basis as is used internally for the review of performance and allocation of resources by
the Chief Operating Decision Maker The revenues of films are earned over various formats; all
such formats are functional activities of filmed entertainment and these activities take place on
an integrated basis. The management team reviews the financial information on an integrated
basis for the Company as a whole, with respective heads of business for each region and in
accordance with Ind-AS 108, the Company provides a geographical split as it considers that all
activities fall within one segment of business which is filmed entertainment.
The Company has identified one geographic markets - India
p. Statement of cash flows
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the company are
segregated.
q. Event occuring after the reporting date
Adjusting events (that provides evidence of condition that existed at the balance sheet date)
occuring after the balance sheet date are recognised in the financial statements. Material non¬
adjusting events (that are inductive of conditions that arose subsequent to the balance sheet date)
occuring after the balance sheet date that represents material change and commitment affecting
the financial position are disclosed by way of notes in financial statements.
2. Significant accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates
and assumptions, as described below, that affect the reported amounts and the disclosures. The
Company based its assumptions and estimates on parameters available when the financial
statements were prepared and reviewed at each balance sheet date. Uncertainty about these
assumptions and estimates could result in outcomes that may require a material adjustment to
the reported amounts and disclosures.
a. Intangible Assets
The Company is required to identify and assess the useful life of intangible assets and determine
their income generating life. Judgment is required in determining this and then providing an
amortisation rate to match this life as well as considering the recoverability or conversion of
advances made in respect of securing film content or the services of talent associated with film
production.
Accounting for the film content requires management's judgment as it relates to total revenues to
be received and costs to be incurred throughout the life of each film or its license period,
whichever is the shorter These judgments are used to determine the amortisation of capitalized
film content costs.
The Company tests annually whether intangible assets have suffered any impairment, in
accordance with the accounting policy These calculations require judgments and estimates to be
made, and in the event of an unforeseen event these judgments and assumptions would need to
be revised and the value of the intangible assets could be affected. There may be instances where
the useful life of an asset is shortened to reflect the uncertainty of its estimated income generating
life.
b. Trade receivable
Judgements are required in assessing the recoverability of overdue trade receivables and
determining whether a provision against those receivables is required. Factors considered
include the amount and timing of anticipated future payments and any possible actions that can
be taken to mitigate the risk of non-payment.
c. Depreciation
Property, plant and equipment are depreciated over the estimated useful lives of the assets, after
taking into account their estimated residual value. Management reviews the estimated useful
lives and residual values of the assets annually in order to determine the amount of depreciation
to be recorded during any reporting period. The useful lives and residual values are based on the
Company’s historical experience with similar assets and take into account anticipated
technological changes. The depreciation for future periods is adjusted if there are significant
changes from previous estimates.
d. Impairment of non-financial assets
In assessing impairment, management estimates the recoverable amount of each asset or cash¬
generating unit based on expected future cash flows and uses an interest rate to discount them.
Estimation uncertainty relates to assumptions about future operating results and the
determination of a suitable discount rate.
e. Provisions
Provisions and liabilities are recognised in the period when it becomes probable that there will
be future outflow of funds resulting from past operations or events and the amount of cash
outflow can be reliably estimated. The timing of recognition and quantification of the liability
require the application of judgment to existing facts and circumstances, which can be subject to
change. Since the cash outlfows can take place many years in the future, the carrying amounts of
provisions and liabilities are reviewed regularly and adjusted to take account of changing facts
and circumstances.
f. Fair value measurement
Management uses valuation techniques to determine the fair value of financial instruments
(where active market quotes are not available) and non-financial assets. This involves developing
estimates and assumptions consistent with how market participants would price the instrument.
Management bases its assumptions on observable data as far as possible, but this is not always
available. In that case management used the best information available. Estimated fair values
may vary from the actual prices that would be achieved in an arm’s length transaction at the
reporting date.
Rights, preferences, restrictions of equity
shares
The Company has only one class of equity shares having par value of Rs.2/- per share. Every holder is entitled to one vote per share. The dividend, if any,
proposed by the Board of Directors and approved by the Shareholders in the Annual General Meeting is paid in Indian rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of
all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
28. Other Statutory Information
i) No proceedings have been initiated on or are pending against the company for holding
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and Rules made thereunder.
ii) Company have not been declared wilful defaulter by any bank or financial institution
or government or any government authority
iii) The company has complied with layers prescribed in Companies Act, 2013
iv) The company has not entered into any scheme of arrangement which has an
accounting impact on current or previous financial year.
v) The Company have not advanced or loaned or invested funds to any other person(s)
or entity(ies), including foreign entities (Intermediaries) with the understanding that
the intermediary shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
b) Provide and guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
vi) The Company have not received any fund from any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing
or otherwise) that the company shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries)
or
b) Provide and guarantee, security or the like on behalf of the Ultimate Beneficiaries.
vii) The company have not any such transaction which is not recorded in the books of
accounts that has been surrendered or disclosed as income during the year in the tax
assessments under the Income-tax Act, 1961
viii) The company has not traded or invested in crypto currency or virtual currency during
the current or previous year
ix) The company has not revalued its property, plant and equipment or intangible assets
or both during the current or previous year
x) Based on the information available with the Company, there are no dues payable as at
the year end to micro, small and medium enterprises as defined in The Micro, Small &
Medium Enterprises development Act, 2006. This information has been relied upon
by the statutory auditors of the Company.
29. Post reporting date events
No adjusting or significant non-adjusting events have occurred between 31 March 2025 and the
date of authorisation of these standalone financial statements.
30. Authorisation of financial statements
The financial statement for the year ended 31 March 2025 were adopted by the board of
directors on 29 May 2025.
For Pavan & Associates For and on behalf of Board of Directors
Chartered Accountants
FRN:012132S
R. S. Sudhish Siram RLVN Kishore
R. Swarna Kumari Managing Director Director
Partner DIN: 00027816 DIN: 08208141
M.No. 231813
UDIN: 25231813BMJRFM7475
Date: 29/05/2025 Srinivasa Rao Kakkera Pooja Upmanyu
Place: Hyderabad Chief Financial Officer Company Secretary
M.No. A50546
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