1. Significant Accounting Policies 1.1 General The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) and the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year. 1.2 Use of Estimate The brparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise. 1.3 Provisions,Contingent Liabilities and Contingent Assets A provision is recognized when the company has a brsent obligation as a result of past event; 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 its brsent value and are determined based on best estimate to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to affect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements. 1.4 Fixed Assets Tangible Fixed Assets Tangible Fixed Assets are stated at cost of acquisition as reduced by accumulated debrciation and impairment losses, if any. Acquisition cost comprises of the purchase price and attributable cost incurred for bringing the asset to its working condition for its intended use. Intangible Fixed Assets Intangible Fixed Assets are carried at cost less accumulated amortisation and impairment losses, if any. The Cost of intangible assets comprises of cost of purchase, production cost and any attributable expenditure on making the asset ready for its intended use. Capital Work in Progress : Capital work in progress are assets that are not yet ready for their intended use which comprises cost of purchase and related attributable expenditures. 1.5 Debrciation/Amortisation Tangible Fixed Assets Debrciation on Fixed Assets has been provided based on the useful life of the asset and in the manner as brscribed in Schedule II to the Companies Act, 2013. Improvement to Lease Assets is amortised over a balance period of lease on straight line basis. Intangible Fixed Assets Intangible fixed assets comprising of Business & Commercial right are amortised over a period of 10 years and Software are amortised over a period of 3 years on Pro Rata Basis. 1.6 Inventories Cassettes and tapes are charged of fully in the year of purchase. Inventories, if any, are valued at lower of cost or net realisable value. The cost of each episode of program is determined on the basis of average cost. Where carrying amount of inventories does not exceeds recoverable amount in the ordinary course of business or where management does not anticipate any furture economic benefit flowing from it appropriate loss has been provided. 1.7 Revenue Recognition Revenue from sale of program/content rights is recognised when the relevant program/content is delivered. In respect of Interest Income, it is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. 1.8 Foreign Currency Transactions Initial Recognition Foreign Currency Transactions are recorded in the reporting currency i.e. rupee value, by applying the exchange rate, between the reporting currency and the foreign currency, to the foreign currency amount at the date of the transaction. Conversion Foreign Currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Exchange Differences Exchange Differences arising on the settlement of monetary items or conversion of monetary items at balance sheet date are recognised as income or expenses. 1.9 Investments Investments that are intended to be held for more than a year are classified as Non-current investments. The Non-current Investments are carried at cost of acquisition. Provision for diminution in value is made if the decline in the value is other than temporary in the opinion of the management. Current Investments are stated at cost or realisable value whichever is lower. 1.10 Employee Benefits Defined Contribution Plan Payments to defined contribution plan are charged to profit & loss account when contributions to respective funds are due. Defined Benefit Plan Employee benefits for Defined benefit schemes, such as leave encashment and gratuity, are provided on the basis of actuary valuation taken at the end of each year. Other short -term employee benefits are charged to profit & loss account on accrual basis. 1.11 Borrowing Cost Borrowing costs directly attributable to development of qualifying asset are capitalized till the date qualifying asset is ready for put to use for its intended purpose. Other Borrowing costs are recognized as expense and charged to profit & loss account. 1.12 Leases Operating Lease expenses are charged to profit and loss account on accrual basis. 1.13 Taxes on Income Current Tax provision is made based on the tax liability computed after considering tax allowances and exemptions at the Balance Sheet date as per Income Tax Act, 1961. Deferred tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred Tax Asset is recognized 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. Deferred tax assets are recognized on carry forward of unabsorbed debrciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits. The carrying amount of Deferred Tax Assets are reviewed at each balance sheet date and written down or written up, to reflect the amount that is reasonably or virtually certain, as the case may be, to be realized. 1.14 Earning Per Share Basic Earnings Per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Dilutive earning per shares is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except when the result would be anti-dilutive. 2 Scheme of Arrangement On 28th August, 2014, the Audit Committee and the Board of Directors of the Company has approved the Composite Scheme of Amalgamation and Arrangement between Maiboli Broadcasting Private Limited and Sri Adhikari Brothers Assets Holding Private Limited and Sri Adhikari Brothers Television Network Limited and UBJ Broadcasting Private Limited and HHP Broadcasting Services Private Limited and MPCR Broadcasting Service Private Limited and TV Vision Limited and SAB Events & Governance Now Media Private Limited (Formerly Known As 'Marvick Entertainment Private Limited') and their respective Shareholders ("Scheme") under Sections 391 to 394 of the Companies Act, 1956 read with Section 78, Sections 100 to 103 of the Companies Act, 1956 and Section 52 and other relevant provision of the Companies Act, 2013. The Hon'ble High Court of Judicature at Bombay vide its Order dated 8th May, 2015 has directed to hold the meeting of the Equity Shareholders of the Company on Friday, 19th June, 2015. In lieu of pending approval from the Hon'ble High Court of Judicature at Bombay and the Equity Shareholders of the Company, the impact of the above mentioned Scheme has not been given in these Financial Statements. 3 Transitional effect of the Asset whose useful life is over. Effective from April 1, 2014 , the Company has revised the useful life of certain fixed assets based on Schedule II to the Companies Act 2013 for the purposes of providing debrciation on fixed assets. Accordingly, the carrying amount of the assets as on April 1, 2014 has been debrciated over the remaining revised useful life of the fixed assets. Consequently, an amount of ! 225.12 lacs rebrsenting the residual value of assets where the remaining useful life of an Asset is Nil i.e. the debrction not charged to Statement of Profit and Loss in earlier years has now been recognised in retained earnings and disclosed in appropriation part of the Statement of Profit and Loss. 4 Prefrential Issue of Warrants During the Previous Financial year company has allotted 100,00,000 warrants convertible into even number of equity of Rs.10/-each of the Company at a issue of Rs.75.10 (including brmium of Rs.65.10) per share to the entities in the promoter group and others on brferential basis on 18th March 2014 in accordance with the provsions of SEBI (Issue of Capital and Disclosure Requirements) Regulation 2009. The above warrants entitle the allotees to convert into equity shares on balance payment of 75% of the issue price. Upto 31st March, 2014 Company had issued 28,20,000 equity shares on conversion of warrants. During the year Company has issued Balance 71,80,000 equity shares on conversion of Warrants. Defined Benefit Plan Employees gratuity and leave encashment scheme is defined benefit plan. The brsent value of obligation is determined based on actuarial valuation using projected unit credit method which recognised each period of service as giving rise to additional need of employee benefit entitlement and measures each unit seperately to build up the final obligation. Capital & Other Commitments As on Balance Sheet date there is no outstanding Capital and Other Commitments. Events occurring after Balance Sheet date There are no event occuring after Balance Sheet date that require adjustment to amount stated on Balance Sheet date. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 Company has not received any confirmation from its vendors that whether they are covered under the Micro, Small and Medium Enterprises Development Act, 2006, hence the amounts unpaid at the year end together with interest paid / payable under this Act cannot be identified. Previous Year Figures The brvious year figures have been regrouped/reclassified whereever considered necessary to correspond with current year clasification/disclosure. As per our report of even date For A. R. Sodha & Co. Chartered Accountants (FRN:110324W) A. R. Sodha Partner M.No.31878 For and on behalf of the Board of Directors Gautam Adhikari Chairman & Whole Time Director Markand Adhikari Vice Chairman & Managing Director Rakesh Gupta AVP - Finance & Accounts and CFO Lehar Arora Company Secretary & Compliance Officer Place: Mumbai Date: 29th May, 2015 |
