Mediaone Global Entertainment Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1. Significant Accounting Policies

The accounting policies mentioned herein relate to the company''s standalone financial statements.

1. Corporate Information

The Primary business of MEDIAONE GLOBAL ENTERTAINMENT LIMITED (MOGEL) is engaged in the production, distribution, and exhibition of films. MOGEL is focused on growing in Film Exhibition (Theatres) through an asset-based ownership model. MOGEL is a BSE-listed company. MOGEL shall develop its primary vertical of asset-based exhibitions and combine them with existing and new activities to build up a major integrated media and entertainment company, which will be based on three central columns, namely,

1. Exhibition

2. Content provider and

3. Content distributors.

MOGEL is headquartered in Chennai.

1.1 Significant Accounting Policies

1.2 Basis of Preparation of Financial Statements

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2014] and other relevant provisions of the Act.

The financial statements have been prepared in accordance with the historical cost convention under the accrual basis of accounting, except for certain financial assets and liabilities (as outlined in the accounting policy below), which have been measured at fair value.

1.3 Use of Estimates

The preparation of financial statements in conformity with the Indian GAPP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates. Any revisions to accounting estimates are recognized prospectively in the current and future periods.

1.4 Inflation

Assets and liabilities are recorded at historical cost to the company. These costs are not adjusted to reflect the changing value in the purchasing power of the company.

1.5 Property, Plant, and Equipment

All items of Property, Plant, and Equipment are stated at the cost of acquisition or installation less accumulated depreciation/ amortization and impairment, if any. Cost includes purchase price, taxes and duties, labour cost, and directly attributable overheads incurred up to the date the asset is ready

for its intended use. However, cost excludes Excise Duty, and Value Added Tax to the extent credit of the duty or tax is availed of.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefit associated with the item flows to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to Profit and Loss during the reporting period in which they are incurred.

1.6 Depreciation and Impairment of Assets

(a) Depreciation

The useful life estimates prescribed in Part C of Schedule II to the Companies Act, 2013, are adhered to, and depreciation is calculated on such assets based on useful life estimates.

Depreciation is charged over the estimated life of the fixed assets on the written-down value method at the rates and in the manner prescribed in Schedule II of the Companies Act, 2013. Items costing less than Rs. 5,000/- are fully depreciated in the year of purchase. For assets purchased/ sold during the year, depreciation is provided on a pro-rata basis.

(b) Impairment

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 asset or the cash-generating unit (''CGU''). If such recoverable amount of the asset of the CGU 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 recognized in the statement of profit and loss. If at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the revised recoverable amount, subject to the maximum of the depreciated historical cost.

Commercial films and associated Rights are recorded at the acquisition costs or capitalized costs less accumulated depreciation. Cost includes acquisition and production costs, any direct overhead and capitalized interest. Completed film and associated rights are amortized as a group or individually in the proportion of gross revenues realized, which they bear to management''s estimate of the total gross revenues expected to be received. Such revenues can be generated over the lifetime of the rights, but for amortization purposes, the period is limited to the lower of the life of the assets or 10 years.

In respect of intangible assets like rights for the display of feature films through satellite or other modes, the Company amortizes a fixed portion of the cost of rights acquired for the display of films through various media or own production, in the year of the first theatrical release of such films and the balance portion is amortized over a balance license period or based on management estimate of feature revenue potential, as the case may be.

1.7 Inventories

Inventories are valued at cost or net realizable value, whichever is lower. Work-in-progress in respect of own production of movies is stated at cost. Cost comprises movie production expenses incurred,

including salaries to artists and others, and shooting expenses. The cost of production of movies completed and not exploited is valued after considering a provision of 5% of the costs.

1.8 Investments

Investments expected to mature after twelve months are taken as non-current as long-term investments and stated at cost. Provision is recognized only in case of diminution, which is otherwise only temporary. Investments that are maturing within three months from the date of acquisition are classified as cash equivalents if they are readily convertible into cash. All other investments are classified as current investments/short-term and are valued at lower of cost or net realizable value.

1.9 Employee Benefits

Contribution to Provident Fund and Earned Leave Encashment are accounted on an actual liability basis. The liability in respect of Gratuity is not provided on an actuarial valuation basis

1.10 Revenue Recognition

1. Revenue from the theatrical exhibition is accounted for on the sale of tickets. The lease rent receivable on leasing of theatre is accounted as per the terms of agreement entered into with the lessee for receipt of lease rent.

2. Revenue from distribution is recognized based on the agreements entered into. The minimum guarantee is charged off in the year in which the agreement is entered into irrespective of the spillover of the period over which revenue accrues to the enterprise.

3. Revenue from rights is recognized in the period in which agreements are entered into.

4. Revenue from production is recognized based on the nature of agreements - While Minimum Guarantee is recognized on release, for Advance payment-based agreements revenue is recognized over the period in which it accrues to the enterprise.

1.11 Cash Flow Statement

Cash flow statement is prepared under the Ind AS standard forms part of the financial statements.

1.12 Contingencies and events occurring after the Balance Sheet date: NIL

1.13 Net Profit or Loss for the period, prior period items, and changes in accounting policies

(a) Net profit for the period: All items of income and expenses in the period are included in the determination of net profit for the period unless specifically mentioned elsewhere in the financial statements or required by an Accounting Standard.

(b) Prior period items - License Fees paid for acquiring the rights of software for the production of films - Rs.150.00 lakhs.

(c) Changes in accounting policies: There are no significant changes in the accounting policies of the company from that of the previous period.

1.14 Borrowing Cost

Finance charges in respect of the production of the film is capitalized as part of inventory cost till the time it is ready for release. Interest so capitalized during the period is Nil.

1.15 Segment Reporting

The Company has identified business segments as its primary segment. Business segments are primarily Exhibition, Distribution, and Production of cinematograph films. Revenues and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each

reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably amongst segments are not allocated to primary segments.

1.16 Accounting for Government Grants

The Company has not received any grants.

1.17 Cash and Cash Equivalents

For presentation in the cash flows, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within current liabilities in the balance sheet.

1.18 Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

1.19 Taxation

Tax expenses are the aggregate of the current tax and deferred tax charged or credited in the Statement of Profit and Loss for the year. The current charge for income tax is calculated following the relevant tax regulations applicable to the company.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however, where there is unabsorbed depreciation or carry-forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date. Deferred Tax Assets and Liabilities are netted off and disclosed in the balance sheet under the Head "Deferred Tax Assets/Liabilities".

1.20 Provisions and Contingencies

The Company recognizes provisions when there is a present obligation as a result of a past event, an outflow of resources embodying economic benefits will probably be required to settle the obligation, and a reasonable estimate of the amount of the obligation can be made. In cases where the available information indicates that the loss on the contingency is reasonably possible but the amount of loss cannot be reasonably estimated, a disclosure is made in the financial statements.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current management estimates. If it is no longer probable that the outflow of resources is not required to settle the obligation, the provision is reversed.

A disclosure of contingent liability is made when there is a possible obligation or a present obligation that may but probably will not require an outflow of resources.

When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognized in the financial statements.

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Jun 30, 2012

1: Disclosure of Accounting Policies: The financial statements have been prepared to comply in all material respects with the Mandatory Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of Companies Act, 1956. These financial statements have been prepared under the historical cost convention on the accrual basis. The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on the management''s best knowledge of current events and actions the company may undertake in future, actual results ultimately differ from estimates.

2: Valuation of Inventories: Inventory of rights is valued at cost.

3: Cash flow Statement: Cash flow statement prepared under the direct method forms part of the financial statements.

4: Contingencies and events occurring after the Balance Sheet date: NIL

5: Net Profit or Loss for the period, prior period items and changes in accounting policies:

(a) Net profit for the period: All items of income and expenses in the period are included in the determination of net profit for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard.

(b) Prior period items-Nil.

(c) Changes in accounting policies: There are no significant changes in accounting policies of the companyfromthatofthe previous period.

6: Depreciation Accounting: Fixed assets are depreciated underwritten down Value Method (WDV) in the manner prescribed under Schedule XIV to the Companies Act, 1956. For the assets acquired during the year, the depreciation has been charged on pro-rata basis. Individual Assets costing less than Rs. 5,000, are written off in the period of acquisition.

7: Accounting for Construction Contracts: The above Standard is not applicable to the Company, as it is not engaged in the business of construction.

8: Accounting for Research and Development: This standard has been withdrawn with effect from 1 -4-2003 consequent to the introduction of Accounting Standard AS-26 on Accounting for Intangible Assets.

9: Revenue Recognition:

1. Revenue from theatrical exhibition is accounted on sale of tickets.

2. Revenue from distribution is recognised based on the agreements entered into. Minimum guarantee is charged off in the year in which agreement is entered into irrespective of the spill over of period over which revenue accrues to the enterprise.

3. Revenue from rights are recognised in the period in which agreements are entered into.

4. Revenue from production is recognised based on the nature of agreements - While Minimum Guarantee is recognised on release, For Advance based agreements revenue is recognised over the period in which it accrues to the enterprise.

10: Accounting for Fixed Assets: Fixed assets are capitalised at acquisition cost, which comprises of freight, installation cost, duties, taxes, and other directly attributable cost of bringing the assets to its working condition for the intended use.

11: Accounting for effects in foreign exchange rates:

a) Conversion - All monetary items denominated in foreign currency are reflected at the rates prevailing on the Balance sheet date.

b) Initial Recognition - Income and Expenditure items involving foreign exchange are translated at the exchange rate prevailing on the dates of transaction.

c) Exchange Differences - Exchange differences, if any, arising on account of fluctuations in foreign exchange have been duly reflected in the Profit & Loss Account.

d) Subsidiary: During the year the operations of subsidiary has become integral to the business of holding company and accordingly the monetary items are stated at closing rates and revenue items are converted at average rates. The fluctuation reserve recognised earlier is carried forward at historic cost as per the Standard.

12: Accounting for Government Grants: The Company has not received any grants.

13: Accounting for Investments: All Long term Investments are carried at cost. Investment in subsidiary is stated at cost.

14. Accounting for Amalgamation: This standard is not applicable for the current reporting period.

15: Accounting for Retirement benefits:

a) Gratuity: The company has gratuity payable ofRs. 1,141,379/- as on the balance sheet date which was recognised earlier. The liability of the present employees as per actuarial valuation is less than the aforesaid amount. However, no reversal is made as the details of claim / settlement of resigned employees is not available.

b) No other short term or long term benefit has accrued to the employees.

16: Borrowing Cost: Finance charges in respect of production of film is capitalised as part of inventory cost till the time it is ready for release. Interest so capitalized during the period is Rs. 2.82 Crores.

17: Segment Reporting: This standard is not applicable to the company as there are no identifiable segments.

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Jun 30, 2011

A. Basis of Preparation of financial statements .

The accompanying financial statements have been prepared under the historical cost convention and are in compliance with the applicable accounting standards issued by the institute of Chartered Accountants of India (ICAI) as referred to in section 211 (3c) of the companies Act, 1956.All items of income and expenditure having a material bearing on the financial statements have been recognised on the accrual basis.

All assets and liabilities other than borrowings and deferred taxes) that are expected to be settled in the ordinary course of business within 12 months from the Balance Sheet date are separately stated as current assets or current liabilities respectively . Borrowings repayable within one year from the date of Balance Sheet, if any have been disclosed separately.

The accounting policies applied by the company, are consistent with those used in the previous year

b. Use of estimates

The Preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements and notes thereto and the reported amounts of revenue and expenses during the accounting year. Actual results could differ from those estimates,

c. Fixed assets and depreciation

Fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any, Cost includes all direct expenses incurred to bring an asset to working condition for its intended use .Financing costs, if any , relating to acquisition of qualifying fixed assets are also to the extent they relate to the period till such assets are ready to be put to use. Amounts paid under contractual terms for purchasing fixed assets and fixed assets acquired but not put to use at the Balance Sheet date are classified as Capital Work in Progress.

Assets interred to be sold or otherwise disposed off within twelve months from the Balance Sheet date, if any, are classified as other current assets and are disclosed as assets held for disposal, and are stated at the lower of net book value as estimated by management.

Depreciation

Depreciation on fixed assets other than intangible assets and leasehold improvements is provided on written down value method pro-rata to the period of use of the assets, at the annual depreciation rates stipulated in schedule XIV to the companies Act, 1956.

d. Intangible assets

- License of Film Rights

Costs incurred towards purchase of License of Film Rights are depreciated on Straight Line method pro-rata to the period of use of the assets, at the annual depreciation rates stipulated in schedule XIV to the companies Act, 1956.

e. Impairment

The Carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recovemble amount is the greater of the asset's net selling price and value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets.

f. investments

- Long-Term investments

Securities intended at the of investment to be held for 12 months or more are classified as long term investments and are stated at cost, adjusted for any diminution In value that is not temporary in nature. Long term investments that are intended to be disposed within 12 months from the balance sheet date are reclassified as current investments, and are recorded at the lower of cost and carrying value as at the date of transfer.

g. Debtors & Creditors

- the Debtors & Creditors balances are subject to confirmation by the respective parties.

h. Employee benefit plans

Employee benefit plans comprise defined contribution plans,

The Company contributes to a gratuity fund maintained by the Life Insurance Corporation of India ('LIC') based upon actuarial valuation.

i. Taxation

Tax expenses comprise current, deferred taxes, Provisions for Current taxes are made as per the current tax laws as regulated by the Income Tax Act, 1961, Deferred income taxes are recognized for the future tax consequences attributable to timing differences between financial statement determination of income and their recognition for tax purposes. The effect on deferred tax. assets and liabilities of a change in tax rates is recognized in income using the tax rates and tax laws that, have been enacted or substantively enacted by the balance sheet date .Deferred tax assets are recognized and carried forward 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 realized .At each balance sheet date the company re-assesses unrecognized deferred tax assets and recognizes any unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets cab be realized Fringe benefit tax is not applicable, as it has been abolished from the Act,

j. Earnings per share

The earnings considered in ascertaining the company's earnings per share are the net profit after tax. The number of shares used in computing the basic earnings per share is the weighted average number of equity shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving the basic earnings per share and also the weighted average shares, if any which would have been issued on the conversion of all dilative potential equity shares,

k. Revenue Recognition

- Theatrical Exhibition income is recognized when tickets are being sold and movie is exhibited.

- Distribution Income is being recognized on the basis of Box office collections received from various exhibitors at gross amount inclusive of taxes.

- Evert income is being recognized when such event is actually conducted and as per the terms of the relevant agreement.

- Safe of Rights income is being recognized when title to such right is being transferred and as per the terms and conditions of the relevant agreement

- Interest income is being recognized or time proportion basis.

l. Foreign currency transactions.

The Company had been following accounting standard 11 for recognizing foreign Exchange Differences which is disclosed as below:

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. At the year end, monetary items are converted into rupee equivalents at the year end exchange rates, No-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

All the exchange differences arising n settlement / conversion of foreign currency transactions are included in the profit and loss account, except in cases where they relate to the acquisition of fixed assets from outside India, in which case they are adjusted in the cost of corresponding asset.

m. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable, that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present values and are determined based on management's estimate of the amount required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the management's current estimates.

n. Segment reporting

Segments have been identified in line with the Accounting Standards on Segment Reporting (AS 17) prescribed by Companies (Accounting Standards) Rules, 2006, taking into account the nature of services, the different risks and returns, the organizational structure and the internal financial reporting system. The Company is engaged in the business of Distributing movies, Serial broadcasts, and theatrical exhibition of movies. It has its operations confined only within India. Based on the dominant source and nature of risk and returns of the Company, its internal organization and management structure and its system of internal financial reporting, business segment has been identified as the primary segment.

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Jun 30, 2010

A. Basis of Preparation of financial statements

The accompanying financial statements have been prepared under the historical cost convention and are in compliance with the applicable accounting standards issued by the Institute of Chartered Accountants of India ('ICAI') as referred to in section 211(3C) of the Companies Act, 1956.Aii items of income and expenditure having a material bearing on the financial statements have been recognized on the accrual basis.

All assets and liabilities other than borrowings and deferred taxes that are expected to be settled in the ordinary course of business within 12 months from the Balance Sheet date are separately stated as current assets or current liabilities respectively . Borrowings repayable within one year from the date of Balance Sheet, if any have been disclosed separately.

The accounting policies applied by the company, are consistent with those used in the previous year.

b. Use of estimates

The Preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements and notes thereto and the reported amounts of revenue and expenses during the accounting year. Actual results could differ from those estimates.

c. Fixed assets and depreciation Fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all direct expenses incurred to bring an asset to working condition for its intended use .Financing costs, if any, relating to acquisition of qualifying fixed assets are also to the extent they relate to the period till such assets are ready to be put to use.

Amounts paid under contractual terms for purchasing fixed assets and fixed assets acquired but not put to use at the Balance Sheet date are classified as Capital Work in Progress.

Assets intended to be sold or otherwise disposed off within twelve months from the Balance Sheet date, if any, are classified as other current assets and are disclosed as assets held for disposal, and are stated at the lower of net book value as estimated by management.

Depreciation

Depreciation on fixed assets other than intangible assets and leasehold improvements is provided on written down value method pro-rata to the period of use of the assets, at the annual depreciation rates stipulated in schedule XIV to the companies Act, 1956.

d. Intangible assets Computer Software

Costs incurred towards purchase of computer are depreciated on written down value method pro-rata to the period of use of the assets, at the annual depreciation rates stipulated in schedule XIV to the companies Act, 1956.

e. Impairment

The Carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset s net selling price and value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets.

f. Investments Long-Term Investments

Securities intended at the time of investment to be held for 12 months or more are classified as long term investments and are stated at cost , adjusted for any diminution in value that is not temporary in nature. Long term investments that are intended to be disposed within 12 months from the balance sheet date are reclassified as current investments, and are recorded at the lower of cost and carrying value as at the date of transfer.

g. Employee benefit plans

Employee benefit plans comprise defined contribution plans.

The Company contributes to a gratuity fund maintained by the Life Insurance Corporation of India ( LIC ) based upon actuarial valuation.

h. Taxation

Tax expenses comprise current, deferred taxes. Provision for Current taxes are made as per the current tax laws as regulated by the Income Tax Act, 1961. Deferred income taxes are recognized for the future tax consequences attributable to timing differences between financial statement determination of income and their recognition for tax purposes. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date .Deferred tax assets are recognized and carried forward 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 realized. At each balance sheet date the company re-assesses unrecognized deferred tax assets and recognizes any unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized. Fringe benefit tax is measured at the amount expected to be paid to the tax authorities with the Income Tax Act, 1961

i. Earnings per share

The earnings considered in ascertaining the company s earnings per share is the net profit after tax. The number of shares used in computing the basic earnings per share is the weighted average number of equity shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving the basic earning per share and also the weighted average shares , if any which would have been issued on the conversion of all dilative potential equity shares.

j. Revenue Recognition

- Advertising Income and broadcast fess are recognized when the related commercial (or) program is telecast.

- Theatrical Exhibition income is recognized when tickets are being sold and movie is exhibited.

- Distribution income is being recognized on the basis of Box office collections received from various exhibitors at gross amount inclusive of taxes.

- Royalty income is being recognized as per the terms and conditions of the relevant agreement

- Event income is being recognized when such event is actually conducted and as per the terms of the relevant agreement.

- Sale of Rights income is being recognized when title to such right is being transferred and as per the terms and conditions of the relevant agreement

- Interest income is being recognized on time proportion basis.

- Compensation receipts are being recognized when such right to receive is established as per the relevant contract.

k. Foreign currency transactions

The Company had been following accounting standard 11 for recognizing Foreign Exchange Differences which is disclosed as below:

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. At the year—end, monetary items are converted into rupee equivalents at the year —end exchange rates, No monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

All the exchange differences arising on settlement / conversion of foreign currency transactions are included in the profit and loss account, except in cases where they relate to the acquisition of fixed assets from outside India, in which case they are adjusted in the cost of corresponding asset.

All other laws regulating the Foreign Exchange dealings are followed by the company.

l. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present values and are determined based on management s estimate of the amount required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the management s current estimates.

m. Segment reporting

Segments have been identified in line with the Accounting Standards on Segment Reporting (AS 17) prescribed by Companies (Accounting Standards) Rules, 2006 , taking into account the nature of services, the different risks and returns, the organizational structure and the internal financial reporting system. The Company is engaged in the business of Distributing movies, Serial broadcasts, and theatrical exhibition of movies. It has its operations confined only within India. Based on the dominant source and nature of risk and returns of the Company, its internal organization and management structure and its system of internal financial reporting, business segment has been identified as the primary segment.