k Provisions
A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates
l Valuation of Work-in-Progress
Work-in-Progress compromises of the following elements:
i) The cost of TV serial episodes shot but not aired according to the percentage of completion as estimated by the management.
ii) Major One Time Cost incurred for which the benefit will accrue over several episodes.
iii) Cost incurred for conceptualization, production and marketing of new serials which have been bagged either during the year or even after the year before the accounts are finalized.
iv) Cost incurred for conceptualisation and development of new web series for hosting on Television and OTT Channels .
v) Work-in-Progress is valued at lower of cost or net realisable value.
m Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.
n Borrowing Cost
Borrowing costs directly attributable to the acquisitions, construction or production of a qualifying asset are capitalized during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred and reported in finance costs. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.
In terms of our report attached as of even date For & on Behalf of the Board
For JMT & Associates Chartered Accountants
Nikhil Champaklal Morsawala Yash A Patnaik Mamta Yash Patnaik
Partnership (Director) (Director)
Membership No. : 034726 DIN: 01270640 DIN: 02140699
Firm Reg. No. : 104167W
Place: Mumbai
Date: 29th May 2024
UDIN: 24034726BKHRBM6787
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