NOTES FQRMING PART QF THE FINANCIAL STATEMENTS 1 Corporate Information Zee Media Corporation Limited ("ZMCL" or "the Company") is incorporated in the State of Maharashtra, India. The Company is mainly in the business of broadcasting of news / current affairs and regional language channels and sale of television programs including program feeds. 2 Significant Accounting Policies A Basis of brparation The financial statements are brpared on going concern basis in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been brpared on accrual basis and under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those of brvious year. B Use of estimates The brparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, on the date of the financial statements and the reported amount of revenue and expenses of the year. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized. C Tangible fixed assets a) Tangible fixed assets are stated at cost, less accumulated debrciation and impairment loss, if any. The cost comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Integrated Receiver Decoders (IRD) boxes are capitalised, when available for deployment. b) Capital work in progress comprises cost of fixed assets and related expenses that are not yet ready for their intended use at the reporting date. D Intangible assets Intangible assets acquired or developed are measured on initial recognition at cost and stated at cost less accumulated amortisation and impairment loss, if any. Intangible assets - channels includes expenses incurred on development of new television channels till the time it is ready for commercial launch. E Borrowing costs Borrowing costs attributable to the acquisition or construction of qualifying assets till the time such assets are ready for intended use are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period they occur. F Impairment of tangible and intangible assets At each Balance Sheet date, the Company reviews the carrying amount of assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their brsent value. G Debrciation / Amortization on tangible / intangible assets Tangible assets Debrciable amount for tangible fixed assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Debrciation on tangible fixed assets is provided on straight line method as per the useful life brscribed in Schedule II to the Companies Act, 2013 except in respect of the following catégories of assets, where the life of the assets has been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement etc. Intangible assets Intangible assets are amortised on straight line basis over their respective individual useful life estimated by the management. H Investments a) Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. b) Current investments are stated at lower of cost and market value determined on an individual investment basis. Long-term investments are stated at cost less provision for diminution other than temporary in the value of such investments. I Transactions in foreign currencies a) Foreign currency transactions are accounted at the exchange rates brvailing on the date of such transactions. b) Foreign currency monetary items are translated using the exchange rate brvailing at the reporting date. Exchange differences arising on settlement of monetary items or on reporting such monetary items at rates different from those at which they were initially recorded during the year, or reported in brvious financial statements are recognised as income or as expenses in the year in which they arise. c) Non-monetary foreign currency items are carried at cost. J Revenue recognition a) Broadcasting revenue - Advertisement revenue (net of discount and volume rebates) is recognized when the related advertisement or commercial appears before the public i.e. on telecast. Subscription revenue is recognized on time basis on the provision of television broadcasting service to subscribers or as per the agreed terms. b) Sales (including television programs) are recognized when the significant risks and rewards have been transferred to the customers. c) Revenue from other services is recognized as and when such services are completed / performed. d) Dividend income is recognized when the Company's right to receive dividend is established. e) Interest income is recognized on a time proportion basis taking into account amount outstanding and the applicable interest rate. K Inventories a) Television programs (completed, under production, available for sale) are stated at lower of cost/ unamortized cost or net realizable value. Cost comprises acquisition / direct production costs and other allocated production overheads. Where the realizable value on the basis of its estimated useful life is less than its carrying amount, the difference is expensed as impairment. Programs are expensed / amortized as under: i) Programs- news / current affairs / chat shows / events etc are fully expensed on telecast. ii) Programs (other than (i) above) are amortized over three financial years starting from the year of first telecast, as per management estimate of future revenue potential. b) Raw Stock - Tapes are valued at lower of cost or estimated net realizable value. Cost is taken on weighted average basis. L Retirement and other employee benefits a) Short-term employee benefits are expensed at the undiscounted amount in the Statement of Profit and Loss in the year the employee renders the service. b) Post employment and other long term employee benefits are recognized as an expense in the Statement of Profit and Loss at the brsent value of the amount payable determined using actuarial valuation techniques in the year the employee renders the service. Actuarial gains and losses are charged to the Statement of Profit and Loss. c) Payment to defined contribution retirement benefit schemes are recognised as an expense in the Statement of Profit and Loss, when due. M Accounting for taxes on income a) Current tax is determined as the amount of tax payable in respect of taxable income as per the provisions of the Income Tax Act, 1961. b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates and laws. N Leases a) Finance lease Assets acquired under Finance Lease are capitalized and the corresponding lease liability is recorded at an amount equal to the fair value of the leased asset at the inception of the lease. Initial costs directly attributable to lease are recognized with the asset under lease. b) Operating lease Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating lease are recognized as expense on accrual basis in accordance with the respective lease agreements. O Earnings per share Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except when the results would be anti-dilutive. P Provisions, Contingent liabilities and Contingent assets Provisions involving substantial degree of estimation in measurement are recognized when there is brsent obligation as a result of past events and it is probable that there will be an outflow of resources. These estimates are revised at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. 2. Previous year comparatives Previous year's figures have been regrouped, rearranged or recast wherever necessary to conform to current year's classification. Figures in brackets pertain to brvious year. |