Corporate Information.

Notes forming part of the financial statement for the year ended 31st March, 2015

UNIVERSAL ARTS LIMITED (Formerly Known as Goldmines Media Limited) is a company in which public are substantially interested incorporated under the Companies Act, 1956 Company is engaged in the business of Trading of Film Rights.

Note 1:- SIGNIFICANT ACCOUNTING POLICIES

1. Basis of brparation of Financial Statements

a) These financial statements have been brpared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been brpared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 2013 and the RBI guidelines/regulations to the extent applicable.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles.

c) The brparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The Difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Debrciation

a) Fixed assets are stated at cost less accumulated debrciation.

b) Till year ended 30th June, 2014, debrciation rates as brscribed under Schedule XIV were taken for the purpose of charging debrciation on fixed assets. As per the newly amended Companies Act, 2013 company is now required to charge Debrciation on fixed assets on the basis of useful life of assets and as per Schedule II of the said Act. Further as per guidance note issued by ICAI, debrciation rate is calculated for existing assets considering its residual value and remaining useful life and debrciation on such assets is charged on written down value method.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate brvailing at the time of the transaction. Outstanding balances are valued at the rate brvailing on the Balance Sheet date.

4. Investments

The Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories and films include raw stock (Tapes and cassettes etc.) TV programmers/ Episodes of TV serials under production and are valued at cost or net realizable value, whichever is lower.

6. Revenue Recognition.

i) In the case of movies telecasted on Doordarshan, the revenue is recognized in the year in which Doordarshan sanctions the payment.

ii) In case of sale of other rights, the Company recognizes the income when all the following criteria are met:

• A license agreement is signed by both the parties;

• The licensee is able to freely exploit the rights granted;

• Effective date of grant of rights to the licensee has commenced as per the agreement or complete payment with respect to the rights has been received, whichever is earlier;

• The Enterprise has no remaining performance obligations;

• The arrangement is fixed and determinable;

• Collection of the fee is reasonably assured;

• All the essential deliverables to the licensee as per the agreement are completed. Other streams of income

In all other cases, revenue is recognized when the Company has the undisputable right to receive the income.

7. Purchase of Movie rights.

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

• A license agreement is signed by both the parties;

• The Enterprise is able to freely exploit the rights granted;

• Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete payment for the same has been made, whichever is earlier;

• The Seller has no remaining performance obligations;

• The arrangement is fixed and determinable;

• All essential deliverables to the Enterprise as per the agreement are completed. •

8. Employees Retirement and other benefits

The Company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

9. Contingent Liabilities

Contingent liabilities are not provided for and are disclosed by way of notes, if any.

10. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the books.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

Notes forming part of the Financial Statements for the period (01/07/2014 to 31/03/2015) ended 31st March 2015.

Note 1 : -

With regards to Sundry Balance Written off - The Capital Work in progress is to be amortised in 3 years. Thus the Capital Work in progress has been amortised starting from the year 2013-14.

Note 2 : -

There are no dues to parties registered under Micro, Small and Medium Enterprises Development Act 2006 as on 31.03.2015

Note 3 : -

Company has not recognised Deferred Tax in the books because of future uncertainity in setting off the losses.

Note 4 : -

Contingent Liabilities is Rs. Nil (P.Y. Rs. Nil)

Note 5 : -

The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2015 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

Note 6 : -

Segment Reporting: In the opinion of the management the company is mainly engaged in the sale of Film, TV serial, Film. All other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

As per our separate Audit Report of Even Date Attached

FOR SEKHRI KANODIA & ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/- AJAY SEKHRI

PARTNER

MEMBERSHIP NO. 032103

FIRM NO. 109389W

FOR and on Behalf of The Board of Directors

Sd/- MANISH SHAH MANAGING DIRECTOR DIN:-00434171

Sd/- ULKA SHAH DIRECTOR DIN:- 00434277

PLACE: MUMBAI

DATE : 30/05/2015