Notes Forming Part of the Financial Statement for the Financial Year ended 31st March 2015 1. Company Information The company was incorporated vide CIN No. L92490TN1994PLC027709 dated 03rd June 1994 issued by Registrar of Companies, Chennai, Tamil Nadu. The Company is listed on the Bombay stock exchange (BSE) and the National stock exchange(NSE) in India. The company currently operates television channels in three south Indian languages brdominantly to viewers in Tamilnadu and Karnataka and also in Andhra Pradesh. The Company's flagship channel is Raj TV. 2. Significant Accounting Policies 2.1 Basis of Preparation of Financial Statements The financial statements are brpared in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under Section 133 of the Companies Act 2013 ("the 2013 Act") read with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provision of Act to the extent notified. The Financial Statements have been brpared on accrual basis under historical cost convention (except on revaluation of land). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act 2013. The Financial Statement are Presented in Indian Rupees 2.2. Estimates & Assumption, Accounting Judgments The brparation of financial requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent gain or loss at the date of financial statements and the reported amounts of revenue and expenses during the reported period. The estimates and assumptions used in the accompanying financial statements are based upon the management's evaluation of the relevant forecast and circumstances as of the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumption are reviewed on ongoing basis. Revision of accounting estimates recognized in the year in which estimated revised and future year affected. 2.3 Tangible Fixed Assets Tangible Fixed Assets are accounted at their original cost inclusive of installation and other incidental expenses directly attributable to the asset till it is put to use. Fixed Assets are stated at cost, after reducing the accumulated debrciation till the balance sheet date. Cost includes taxes, duties, freight and incidental expenses relating to acquisition and installation of fixed assets. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from existing assets beyond its brviously assessed standard of performance. Assets not ready for their intended use are shown as Capital Work -in-Progress 2.4 Debrciation and Amortization The company has revised its policy of providing debrciation on fixed assets effective from 1st April 2014.The debrciation for the year has been provided on Straight Line Method (SLM) on the basis of useful life specified in the Schedule II to the Companies Act, 2013 as against Straight Line Method (SLM) applying the rates, as brscribed in Schedule XIV to the Companies Act, 1956. The carrying amounts of various tangible fixed assets as at 1st April 2014 amount to Rs.707.11 lacs has been recognized in the opening balance of retained earnings where the useful of an asset is Nil. In other cases, the carrying amounts as on 1st April 2014 have been debrciated over the remaining useful life of the asset as per Schedule II. As a result of this change, the debrciation charge for the year ended 31st March, 2015 is higher by Rs.237.76 lacs The useful life of the assets as given in the Schedule II to the companies Act,2013 as follows Category of assets Useful life Plant and machinery 13 Years Vehicles 10 Years Computer 3 Years Building 30 Years Furniture and fixtures 10 Years Assets costing less than Rs.5, 000 each is fully debrciated in the year of capitalization 2.5 Cash and Cash Equivalents Cash and Cash equivalent comprises of Cash on Hand, Cash at bank and Demand Deposit with banks. 2.6 Cash Flow Statement Cash low statement has been brpared as per Indirect Method set out in AS-3 brscribed in Companies (Accounting Standards) Rules, 2014. 2.7. Inventory Inventories comprises films not telecast are valued at lower of cost and net realizable value. 2.8. Revenue Recognition Broadcasting services - Advertisement Revenue is recognized when the related advertisement or commercial is telecast. Subscription revenue is recognized on completion of service. Sales comprise amounts invoiced to customers for services provided net of discounts. Sale is recognized when the risk and rewards of ownership are passed onto the Customers. Other Revenue/Income is generally accounted in accrual as they are earned. 2.9. Foreign Currency Transactions Foreign currency transactions are recorded at the exchange rates as on the date of the transaction and the exchange difference arising from foreign currency transaction is dealt with in Profit and Loss account. The difference between the forward rate and the exchange rate at the inception of a forward exchange contract is recognized as income or expense over the life of the contract. Monetary items denominated in foreign currency and outstanding at the balance sheet date are translated at the exchange rate ruling on that date. Exchange differences on foreign exchange transactions other than those relating to fixed assets are recognized in the profit and loss account. Any gain/loss on exchange fluctuation on the date of payment of expenditure incurred for acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets. 2.10. Provision and Contingencies A provision is recognized in the balance sheet when the company has a brsent obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These are reviewed at each year end date and adjusted to reflect the best current estimate. 2.11. Earnings Per Share: Basic earnings per shares is arrived at based on net profit / (loss) after taxation available to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted Earnings per share arrived by dividing the adjusted profit / (loss) after tax by the weighted average number of equity shares for arriving basic earnings per share plus the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares, if any. 2.12 Taxes on Income: Tax expenses provision comprises of Current tax& Deferred Tax. Current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws and provision of Income Tax Act, 1961. 2.13 Retirement Benefits: i. Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund. ii. Gratuity liability is a defined benefit obligation. The cost of providing benefits under the plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss. 2.14 Prior Period Items: Income or Expenses which arise in the current period as a result of change in the brparation of the financial statements of one or more prior periods is shown as "Prior Period Item". 2.15 Investments: Investments, which are readily realizable 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. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss. 2.16 Impairment of Assets: The Carrying amount of assets are reviewed at Balance Sheet date, if there is any indication of impairment based on internal / external factors. 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 period in which an asset is identified as impaired. The recoverable amount is greater of the asset's net selling Price and value in use. In assessing value in use, the estimated future cash lows are discounted to the brsent value. A brviously recognized impairment loss is further provided or reversed depending on change in circumstances. Deferred tax is recognized, subject to consideration of prudence, 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. Deferred tax Assets arising from timing differences are recognized to the extent there is a reasonable certainty that these would be realized in future. Additional Information to the Financial Statement for the year ended 31st March 2015 F. Segment Reporting The company has no reportable Business or Geographical segment as defined in Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India. H. Revaluation of Land Accounting Standard (AS) 10 on 'Accounting for Fixed Assets' permits the revaluation of fixed assets and, inter alia, requires that "An increase in net book value arising on revaluation of fixed assets should be credited directly to owners' interests under the head of revaluation reserve, except that, to the extent that such increase is related to and not greater than a decrease arising on revaluation brviously recorded as a charge to the profit and loss statement, it may be credited to the profit and loss statement." During the F.Y 2013-14 - Land was revalued and the increase in Net Book Value arising on revaluation of Land to the extent of Rs.442,045,618/- was credited to Revaluation Reserve. I. Corporate Social Responsibility As per Section 135 of the Companies Act, 2013, a corporate social responsibility (CSR) committee has been formed by the Company. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013. J. Trade Debtors and Creditors The balances of sundry creditors and Debtors as shown in the balance sheet are subject to reconciliation & confirmation. K. Commitments and Contingencies There are no Contingent Liabilities as on the Balance sheet date. L. Events after Balance Sheet Date There are no material events occurred after the balance sheet date, which requires adjustment to assets / liabilities as of March 31, 2015. M. General Notes a)All Amount mentioned in financial statement rebrsents for the year ended 31.03.2015. b)Previous year figures have been rearranged wherever necessary to conform to Current year Classification of accounts. c)All amounts in the financial statements have been rounded off to the nearest Indian rupee. d) Based on the information and explanation given by the company there were no dues to Micro, small Scale industries. Rajendran.M Managing Director Din No: 00821144 Ravindran.M Director Din No:00662830 S.Jeyaseelan CFO Joseph Cheriyan Company Secretary Membership No:26524 Vide our report of even Date For Pratapkaran Paul & Co., Chartered Accountants. Firm Registration No.02777S -Sd/-Pratapkaran Paul Partner Membership No 023810 Place: Chennai Date: 27th May 2015 |