SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS:

1. Significant Accounting Policies:

a. Basis of Accounting and Preparation of Financial Statements:

The Financial Statements have been brpared on historical cost convention and in accordance with the normally accepted accounting principles on a going concern basis.

b. Fixed Assets:

Fixed Assets are stated at cost less debrciation.

c. Debrciation / Amortization:

1. Debrciation on Fixed Assets is provided based on useful life of the assets in accordance with requirement of Part C of Schedule II of Companies Act, 2013.

2. Brand Equity, Goodwill and Software Library are debrciated over a period of their effective life as determined by the management not exceeding ten years from the date of acquisition.

3. Intangible assets in the nature of copyrights etc., are amortized over a period of 5 years.

4. Improvements effected on brmises taken on lease are amortized over remaining period of lease.

5. Cost of Tele-Serials / Tele-Films not having any repeat telecast value and other future exploitation benefits are written off in full in the year of telecast.

6. Cost of Tele-Serials / Tele-Films / Events / Game shows having repeat telecast value and other future exploitation benefits and in respect of which the company holds right of exploitation -80% of the cost is written off in the year of telecast and balance 20% is written off equally over the next two years calculated based on absorption method.

7. Cost of film production:

In the case of exploitation rights assigned on an Outright / Minimum Guarantee basis:­- Entire expenditure incurred for production of the film is charged to the profit & loss account. In the case of exploitation rights held for own release or assigned on distribution basis or with a combination of outright, minimum guarantee and distribution basis:­- Expenditure incurred for the production of the film is charged to profit & loss account equally over the period of 3 financial years commencing from the date of release of the film(s).

d. Inventories / Value of Unsold Fcts and Work-in-progress: Stock of unused cassettes, unsold free commercial times banked on programs telecasted are valued at cost. Work-in-progress is calculated based on absorption method valued at cost or market price whichever is less.

e. Revenue Recognition: Television content:

Income from Tele-Serials / Tele-Films / Game shows / Events is recognized on accrual basis as per the terms of the Agreement entered into for telecasting / exploitation.

• In case of Domestic telecast, Revenue is recognized on the telecast of the concerned program.

• In case of overseas telecast, Revenue is recognized at the point, when the tapes are delivered.

Film - own production:

• In the case of outright / minimum guarantee assignment: - Income is recognized on accrual basis as per terms of agreement entered into for release / exploitation.

• In the case of own exploitation / Distribution assignment: -Income is recognized on receipt basis during the period of receipt.

Film - Distribution:

Distribution margin income is recognized on accrual basis as per terms of agreement entered into for release / exploitation.

f. Foreign currency Transactions:

Transactions pertaining to income and expenditure are accounted at the rate brvailing on the date of transaction.

Outstanding balances of Current Assets and Current Liabilities relating to Foreign Currency transactions are restated in rupees by adopting the rate of exchange brvailing on the date of Balance Sheet and the resultant exchange gain / loss is recognized / written off in the Profit & Loss Account accordingly.

g. Investments

The long term investments are shown at cost in accordance with AS-13 -Accounting for Investments.

h. Leave Encashment:

Company has formalized the existing rules for leave encashment under a scheme administered by Life Insurance Corporation of India. The contributions will be made annually based on leave credit available to the employees at the end of each financial year and the Company will report its status in accordance with AS - 15 Employees Benefits issued by the Institute of Chartered Accountants of India.

i. Retirement Benefits:

Company formed a trust named 'Radaan Mediaworks India Limited Employees Group Gratuity Assurance Scheme' for the benefit of the employees and to administer the funds in respect of gratuity of employees with intent to enter into a approved scheme of group gratuity with Life Insurance Corporation of India. The contributions will be made through trust and the Company will report its status in accordance with AS - 15 - Employee Benefits issued by the Institute of Chartered Accountants of India.

j. Earnings Per Share:

The Company reports Basic and Diluted Earnings per Share (EPS) in accordance with Accounting Standard 20 - Earnings per Share - issued by the Institute of Chartered Accountants of India. The Basic / Diluted EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares (including Bonus Shares, if any) during the accounting period.

k. Accounting for Taxes on Income:

Current tax is determined on the basis of the amount of tax payable on taxable income for the year. In accordance with the Accounting Standard-22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, Deferred Tax is calculated at current statutory income tax rates and is recognized on timing differences between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods.

l. Impairment of Assets

The Company has a policy of comparing the recoverable value with the carrying cost and charging impairment when required.

m. Accounting for media receivables

The Company has formulated a system of evaluating receivables and advances lying with marketing agencies and other significant vendors and assessing the recoverability. The recoverability thereof shall be reviewed periodically for suitable provision considered necessary. Provisions so made shall be written off from the books of account equally over a period of six years.

n. Provisioning for unsold Fcts

The Company has decided to provide as a conservative measure, a minimum of 1% on total value of sales related to Free Commercial Time (FCT) with a view to accommodate the risk involved in the value on liquidation of unsold FCTs held.

o. contingent Liabilities & Provisions

All known liabilities & Provisions of material nature, if any, have been provided for in the accounts in accordance with AS 29 -Provisions, Contingent Liabilities & Contingent Assets.

2.1 Investments:

During the year 2010 – 11, Company had entered into a share subscription agreement with Celebrity Cricket League Private Limited (‘CCL’) and had invested Rs.75 Lacs consists of 7,50,000 equity shares of Rs.10/- each and the same is shown at cost under the ‘Non Current Investment’.

2.2 The Company had entered into leasehold agreements with Mrs.R.Radikaa Sarathkumar, Managing Director for acquiring leasehold rights for a period of 20 years in respect of properties at No.8 & 10, Paul Appasamy Street, Chennai - 17.

The consideration for lease deposit was Rs. 200 Lakhs out of which a sum of Rs. 75 Lakhs was discharged by way of allotment of 7,50,000 equity shares of Rs. 10/- each as fully paid (since sub-divided) and out of the remaining deposit the sum of Rs.125 lacs was discharged in the form of cash. The registration formalities in respect of lease agreements are yet to be completed.

As per Accounting Standard 19 - Leases, issued by Institute of Chartered Accountants of India, the Operating Lease entered into by the Company is given below:

a. The total of future minimum lease payments under non-cancellable operating leases for each of the following periods;

(i) Not later than one year – Rs.18,00,000

(ii) Later than one year and not later than five years – Rs.72,00,000

(iii) Later than five years – Rs.6,00,000 (upto july 2020) b. The total of future minimum sublease payments expected to be received under non-cancellable subleases at the balance sheet date – NIL

c. Lease payments recognized in the statement of profit and loss for the period, with separate amounts for minimum lease payments and contingent rents – Rs. 18,00,000/-

d. Sub-lease payments received (or receivable) recognized in the statement of profit and loss for the period – NIL

e. A general description of the lessee’s significant leasing arrangements including, but not limited to, the following:

(i) The basis on which contingent rent payments are determined – NIL

(ii) The existence and terms of renewal or purchase options and escalation clauses

– Lease for period of 20 years renewable on the basis of completion of 11 months.

(iii) Restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing –

(a) Improvement to be made with the written consent of the Lessor,

(b) In case of vacation by lessee on its own before the expiry of the lease period, the cost of improvement made to leasehold property to be borne by the lessee.

(c) In the case of vacation at instance of the lessor before the expiry of the lease period, the written down value as on date of vacation to be borne by the lessor.

2.3 The cost of episodes of tele-serial(s) / tele-film(s) / feature film(s) in progress or completed and pending telecast / release as on date of Balance Sheet has been considered as Work-in-progress and calculated based on absorption method and the same is valued at cost or market price, whichever is less.

2.4 a. As per accounting policy d., the value of unsold FCT accumulated and held for more than 12 months has been classified under 2.12 Non Current Assets. As per accounting policy n. Company has so far written off a sum of Rs.1,76,19,701 which includes write off of Rs.28,32,800 for the F.Y.2014 – 15 held under Non Current Assets.

b. As per accounting policy m.Accounting for media receivables, the company has written off a sum of Rs.1,00,34,234 for the financial year 2014-15 for which provision had already been made in earlier periods. This however, has not affected the financial results for the current year.

2.5 Segment Reporting

The company operates in the area of producing content for tele-serials, events, game shows, etc., apart from producing films, undertaking distribution activities, theatrical plays and setting up of training course comprise of acting, dance, martial arts, yoga etc., Management believes that it is not practical to provide segment disclosures relating to those costs and expenses as operational activities are intertwined and therefore, it has been decided by the management to report its functional operations under one segment -'Media & Entertainment' with effect from April 1, 2011 and continue to report accordingly.

2.6 There are no dues to small and micro enterprises during the year ended March 2015 & March 2014.

2.7 Figures of Previous year have been re-grouped and re-classified, wherever necessary to conform to those of the current year.

2.8 Figures have been rounded off to the nearest rupee.

For M/s.CNGSN & ASSOCIATES LLP

Chartered Accountants

F.R.No:004915S

-sd-  C .N.Gangadaran

 Partner

Membership No: 11205

On behalf of the Board of Directors

-sd- R.Radikaa Sarathkumar Chairperson & Managing Director

-sd- A .Krishnamoorthy Director

-sd- M.Kavirimani Kanhu Chief Financial Officer

-sd- Charan Sahu  Company Secretary

Place: Chennai

Date : 26th May 2015