Notes forming part of the financial statements : 31st March 2016

Note 1 Significant Accounting Policies

1. Basis of Accounting

The financial statements have been brpared on an accrual basis of accounting and in accordance with the generally accepted accounting principles in India, provisions of the Companies Act, 2013 (the Act) and comply in material aspects with the accounting standards notified under the Act read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

2. Income Recognition

(i) Management Consultancy fees and royalty are recognised on accrual basis.

(ii) Income from wellness centre (SPA) activities is recognised on accrual basis. Discounts offered to the customers are shown separately as expenses.

(iii) Sales (including licensing of Programs/ Films/ Movie rights) are recognised when the delivery is completed

(iv) Interest income is recognised on a time proportion basis taking into account outstanding and applicable interest rates.

(v) Dividend income is recognized on receipt basis.

3. Fixed Assets

i) Fixed assets are stated at cost of acquisition /construction including all costs attributable to bringing the assets to their working condition, less accumulated debrciation.

ii) Assets individually costing less than Rs. 5000/- are fully debrciated in the year of purchase.

iii) Pre-operative expenditure incurred during the construction period is capitalized under the relevant Fixed Asset, upon commencement of the commercial operations, in accordance with the generally accepted accounting principles.

4. Debrciation/Amortisation

(i) Debrciation is provided on fixed assets as per the Straight Line Method at the rates and in the manner stipulated in Schedule XIV to the Companies Act, 2013 except for Mobile Handsets in respect of which, the Company adopts writing off the entire value in three years from the date of their acquisition (i.e., at 33 1/3% per annum). The Company estimates that the recoverable value at the end of specified period would be insignificant in respect of those assets.

(ii) Satellite Rights in respect of a feature film are amortised in ten equal annual installments.

(iii) Leasehold improvements are amortized over the period of primary lease term (36 months).

5. Investments

All investments are classified as Long Term Investments and are carried at the cost of acquisition. Permanent diminution in the book value of long-term investments with reference to the market value and other relevant factors is recognized and charged to the Statement of Profit and Loss.

6. Borrowing Costs

Borrowing costs attributable to the acquisition/construction of a qualifying asset are capitalised as part of the cost of such assets, upto the period assets are ready for their intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

7. Accounting for Taxes on Income

Provision for Current tax is made as per the relevant provisions applicable under the Income Tax Act, 1961. Deferred tax asset/liability arising on account of timing difference and capable of reversal in subsequent periods is recognized using the tax rates and tax provisions that have been enacted or substantively enacted as at the Balance Sheet date.

8. Inventories

Body Care products and accessories are carried at the lower of the Cost or Net Realisable Value.

9. Retirement Benefits

Liability for Gratuity and leave encashment is provided for in the accounts on the basis of actuarial valuation.

10. Earnings per Share

Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of subsequent issue of shares.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

11. Impairment of Assets

The Company identifies assets to be impaired based on cash generating unit concept at the year end in terms of paragraphs 5 to 13 of the Accounting Standard -28 for the purpose of arriving at Impairment loss there on, if any, being the difference between the book value and recoverable value of relevant assets. Impairment loss when crystallizes is charged against the revenue of the year.

12. Contingent Liabilities and Provisions

Disputed liabilities and claims against the Company including claims raised by the revenue authorities pending in appeal for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes on accounts.

However, brsent obligation as a result of a past event with possibility of outflow of resources, when reliably estimated, is recognised in accounts, wherever applicable.

13. Use of Estimates

The brparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

Note 2:- Contingent liabilities

a. Arrears of dividend on Redeemable Cumulative Preference Shares - Nil (Previous Year - Rs. Nil).

b. Contingent Liabilities as may arise on account of non/delayed compliance of certain fiscal statutes-Amount unascertainable (Previous Year - Amount unascertainable).

Note 3:­2,54,000 0% Redeemable Cumulative Preference Shares of Rs. 100/- each fully paid up amounting to Rs. 254.00 Lacs due to be redeemable at 30th January 2013 (as extended brviously) are further extended for redemption after 5 years i.e. up to 30th January 2018 pursuant to the provisions of section 106 of the Companies Act 1956. Further, the rate of Preference Dividend has been reduced to 0% from 1%.

Note 4:-

Unsecured loans from a body corporate under the same group (interest free) are repayable on demand. Certain portion of the said loan is considered as long term debt by the Company, keeping in view the purpose and the tenure, as agreed upon with the lender body corporate.

Note 5:-

In the earlier years, the Company has given an interest-free Security Deposit of Rs. 1,500 Lacs to Shree Ram Urban Infrastructure Ltd. (SRUIL) as per Memorandum of Understanding (MoU) for establishment and running of wellness centre in the upcoming project of SRUIL, as per the terms of which the Company is entitled to share revenue with SRUIL/society for a specific period.

Note 6:-

During the brvious years, the Company has incurred Publicity and Promotion expenses including Satellite rights, in respect of a feature film amounting to Rs. 740.28 Lacs , of which, the management is of the view that Rs. 400.00 Lacs would rebrsent the future economic benefit of the satellite rights and has accordingly capitalised the same under Intangible assets. Due to capitalising the same, the fixed assets are over stated to the extent of Rs. 199.76 Lacs (Previous Year Rs. 250.39 Lacs).

Note 7:-

Based on a revenue sharing agreement entered into between the Company and SKM Real Infra Limited (formerly SKM Fabrics (Andheri) Ltd.) (SKM) the Company has given an interest free deposit of Rs. 23.75 Crores (Previous year - Rs. 34.92 Crores) in relation to the Wellness Academy and other allied activities being set up in the portion of commercial brmises developed by SKM.

Note 8:-

Certain balances under the heads of unsecured borrowing, Trade Receivables, Loans and Advances and Trade payables are subject to confirmation and consequential reconciliation, if any. The necessary adjustments in the respective accounts will be carried out in the year such reconciliation /confirmation takes place.

Note 9:-

In the opinion of management, Current Assets, Loans and Advances are expected to realize at the values rebrsented in the financial statements in the normal course of business and adequate provision has been made for all known liabilities.

Note 10:-

Travelling expenses include Directors' Travelling expenses (foreign & domestic) of Rs. 1.18 Lacs (Previous Year - Rs. 2.35 Lacs).

Note 11:-

As per the requirements of Section 22, there are no Micro and Small Enterprise to whom the Company owes dues, which are outstanding more than 45 days as at 31st March, 2016. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. The same has been taken on the basis of information provided by the Company and relied upon by the Auditors.

Note 12:- Leased out Premises:

The Company does not have any brmises on operating lease basis as on the end ofthe year

Note 13:-

The Company vide circular resolution date 25th January 2016 and in accordance with provision of section 2(41) and other applicable provision of the Companies Act, 2013 has filed an application to Register of Companies for extension of the financial year for brparation of accounts covering a period of 15 months i.e. from 1st January 2015 to 31st March 2016 in view to Comply with the Companies Act 2013 where in it is required to have a uniform accounting year.

Note 14:-

As the Company has changed its accounting year from January to March the current financials have been made for 15 Months i.e. 1st January, 2015 to 31st March, 2016 and hence the amounts of the current year are not comparable with the brvious year.

Previous year figures have been grouped / regrouped as current year financials.

For and on behalf of the Board

Chairman

Whole Time Director

 C.F.O.

Mumbai, Dated 7th May 2016