E. Provisions and Contingent Liabilities
Provisions are recognised when the Company:
(a) has a present obligation (legal or constructive) as a result of a past event,
(b) it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and
(c) a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the best estimate of the expenditure required to settle
the present obligation at the Balance Sheet date. If the effect of the time value of
money is material, provisions are discounted to reflect its present value using a
current pre-tax rate that reflects the current market assessments of the time value
of money and the risks specific to the obligation. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance
cost.
Contingent liabilities are disclosed when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past events where
it is either not probable that an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.
F. Revenue Recognition
Revenue is recognized, net of sales related taxes, when persuasive evidence of
an arrangement exists, the fees are fixed or determinable, the product is delivered
or services have been rendered and collectability is reasonably assured.
The Company considers the terms of each arrangement to determine the
appropriate accounting treatment. Theatrical -Contracted minimum guarantees
are recognized on the theatrical release date. The Company's share of box office
receipts in excess of the minimum guarantee is recognized at the point they are
notified to the Company.
Revenue from operations includes sale of goods and services measured at the
fair value of the consideration received or receivable, net of returns and
allowances, trade discounts and volume rebates and excluding taxes or duties
collected on behalf of the government. In respect of films produced/ co-produced
/ acquired, revenue is recognised in accordance with the terms and conditions of
the agreements on or after the first theatrical release of thefilms.
G. Other Income
Interest income is recognised/accounted on accrual basis.
Dividend Income on investments is recognised for when the right to receive the
dividend is established.
Interest on Investments is recognised on a time proportion basis taking into
account the amounts invested and the rate of interest.
H. Employee benefits/ Retirement Benefits:
Employee benefits include provident fund, superannuation fund, gratuity fund,
compensated absences, long service awards and post-employment medical
benefits.
SHORT-TERM OBLIGATION:
Short-term employee benefits like salaries, wages, bonus and welfare expenses
payable wholly within twelve months of rendering the services are accrued in the
year in which the associated services are rendered by the employees and are
measured at the amounts expected to be paid when the liabilities are settled.
L ONG-TERM OBLIGATION
Compensated absences which are not expected to occur within twelve months
after the end of the period in which the employee renders the related service are
recognised as a liability at the present value of the defined benefit obligation as at
the Balance Sheet date less the fair value of the plan assets out of which the
obligations are expected to be settled. Long Service Awards are recognised as a
liability at the present value of the defined benefit obligation as at the Balance
Sheet date.
DEFINED CONTRIBUTION PLANS
Contributions to defined contribution schemes such as employee’s state
insurance, labour welfare fund, superannuation scheme, employee pension
scheme etc. are charged as an expense based on the amount of contribution
required to be made as and when services are rendered by the employees.
Company’s provident fund contribution, in respect of certain employees, is made
to a government administered fund and charged as an expense to the Statement
of Profit and Loss. The above benefits are classified as Defined Contribution
Schemes as the Company has no further defined obligations beyond the monthly
contributions.
I. Impairment Of Non-Financial Assets:
Assessment for impairment is done at each Balance Sheet date as to whether
there is any indication that a non-financial asset maybe impaired. If any indication
of impairment exists, an estimate of the recoverable amount of the individual
asset/cash generating unit is made. Asset/cash generating unit whose carrying
value exceeds their recoverable amount are written down to the recoverable
amount by recognising the impairment loss as an expense in the Statement of
Profit and Loss. Recoverable amount is higher of an asset’s or cash generating
unit’s fair value less cost of disposal and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the continuing
use of an asset or cash generating unit and from its d isposal at the end of its useful
life.
Assessment is also done at each Balance Sheet date as to whether there is any
indication that an impairment loss recognised for an asset in prior accounting
periods may no longer exist or may have decreased. An impairment loss
recognised for goodwill is not reversed in subsequent periods.
J. Taxation:
Income tax expense for the year comprises of current tax and deferred tax. It is
recognised in the Statement of Profit and Loss except to the extent it relates to a
business combination or to an item which is recognised directly in equity or in
other comprehensive income.
Current tax is the expected tax payable/receivable on the taxable income/ loss for
the year using applicable tax rates at the Balance Sheet date, and any adjustment
to taxes in respect of previous years. Interest income/expenses and penalties, if
any, related to income tax are included in current tax expense.
Deferred tax is recognised in respect of temporary differences between the
carrying amount of assets and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes. Deferred tax is recognized
using the tax rates enacted, or substantively enacted, by the end of the reporting
period.
Deferred tax assets are recognised only to the extent that it is probable that future
taxable profits will be available against which the asset can be utilised. Deferred
tax assets are reviewed at each reporting date and reduced to the extent that it is
no longer probable that the related tax benefit will be realised.
Current tax assets and current tax liabilities are offset when there is a legally
enforceable right to set off the recognised amounts and there is an intention to
settle the asset and the liability on a net basis. Deferred tax assets and deferred
tax liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities; and the deferred tax assets and the
deferred tax liabilities relate to income taxes levied by the same taxation authority.
As on 31st March 2024, there is no Deferred Tax Asset or Deferred Tax Liability.
K. Earnings Per Share
Basic earnings per share is computed by dividing the net profit for the period
attributable to the equity shareholders of the Company by the weighted average
number of equity shares outstanding during the period. The weighted average
number of equity shares outstanding during the period and for all periods
presented is adjusted forevents, such as bonus shares, other than the conversion
of potential equity shares that have changed the number of equity shares
outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the
period attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all dilutive
potential equity shares.
L. Segment reporting
The Company is primarily engaged in the business of “Production of Movies and
TV Serial’, which, in the context of Ind AS 108 on Operating Segments,
constitutes a single reportable segment.
Note on Deposit with Custodian Special Court:
A sum of Rs. 50 lacs was payable to Jainam Securities P Ltd., which was declared as a Benami Co
and belonged to Pallav Sheth. Pallav Sheth is a judgement debtor of Fairgrowth Financial
Services Ltd. (FFSL). All properties belonging to FFSL and Pallav Sheth stand statutorily and
automatically attached under Special Court (Trial of Offences Relating to Transactions in
Securities) Act, 1992. Huge Amount were outstanding to be paid by FFSL to the Custodian of
Special Court. Pallav Sheth was adjudged an insolvent. On default made by FFSL and Pallav
Sheth, the Custodian applied to recover the dues from Jainam Securities and its debtors. On
receipt of the order to pay the dues of 50 lakhs along with the Interest, Company has deposited Rs.
53,88,866 with the Court during the financial year ended 2020. However, as on the reporting date
of current financial year 2022-23 the matter is still under Litigation and Final Judgement over the
same is pending.
I. Fairvalue hierarchy
The fair values of the financial assets and liabilities are included at the amount that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
This section explains the judgements and estimates made in determining the fair values of
the financial instruments that are
(a) recognised and measured affair value and,
(b) measured at amortised cost and for which fair values are disclosed in the financial
statements.
To provide an indication about the reliability of the inputs used in determining fair value, the
company has classified its financial instruments into the three levels prescribed under the
Indian accounting standard. An explanation of each level is as follows:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. For
example, listed equity instruments that have quoted market price.
Level 2: The fair value of financial instruments that are not traded in an active market (for
example, traded bonds, over-the- counter derivatives) is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3. This is the case for unlisted equity securities, contingent
consideration and indemnification asset included in level 3.
II. Valuation techniques used to determinefair value
Significant valuation techniques used to value financial instruments include:
• Use of quoted market price or dealer quotes for similar instruments
• Using discounted cash flow analysis.
The fair values computed above for assets measured at amortised cost are based on discounted
cash flows using a current borrowing rate. They are classified as level 2 fair values in the fair value
hierarchy due to the use of unobservable inputs.
23 Financial Risk Management
The Company has exposure to the following risks arising from financial instruments:
• Credit risk;
• Liquidity risk; and
• Market risk
A. Credit risk
Credit risk refers to the risk of default on its obligation by the counter party resulting in
a financial loss. The company is exposed to credit risk from its operating activities
(primarily for trade receivables and loans) and from its financing activities (deposits
with banks and other financial instruments).
Credit risk management
Credit risk is managed through credit approvals, establishing credit limits and
continuously monitoring the credit worthiness of customers to which the Company
grants credit terms in the normal course of business. The Company establishes an
allowance for doubtful debts and impairment that represents its estimate of incurred
losses in respect of trade and other receivables and investments.
The Company’s maximum exposure to credit risk as at 31 st March, 2024 and 2023 is
the carrying value of each class of financial assets.
invests in deposits with banks where credit risk is largely perceived to be
extremely insignificant.
B. Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet
its obligations on time or at a reasonable price. For the Company, liquidity risk arises
from obligations on account of financial liabilities - trade payables and borrowings.
Liquidity risk management
The Company’s approach to managing liquidity is to ensure that it will have sufficient
funds to meet its liabilities when due without incurring unacceptable losses. In doing
this, management considers both normal and stressed conditions. A material and
sustained shortfall in our cash flow could undermine the Company’s credit rating and
impair investor confidence.
The Company maintained a cautious funding strategy, with a positive cash balance
throughout the year ended 31st March, 2024 and 31st March, 2023. This was the
result of cash delivery from the business. Cash flow from operating activities provides
the funds to service the financing of financial liabilities on a day-to-day basis. The
Company's treasury department regularly monitors the rolling forecasts to ensure it
has sufficient cash on-going basis to meet operational needs. Any short term surplus
cash generated by the operating entities, over and above the amount required for
working capital management and other operational requirements, are retained as
cash and cash equivalents (to the extent required).
C. Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates,
interest rates and equity prices will affect the Company’s income or the value of its
holdings of financial instruments. Market risk is attributable to all market risk sensitive
financial instruments. The Company is exposed to market risk primarily related to
interest rate risk and the market value of the investments.
I Currency Risk
The functional currency of the Company is Indian Rupee. Currency risk is not
material, as the Company does not have any exposure in foreign currency.
ii Interest Rate Risk
Interest rate risk can be either fair value interest rate risk or cash flow interest
rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed
interest bearing investments because of fluctuations in the interest rates. Cash
flow interest rate risk is the risk that the future cash flows of floating interest
bearing investments will fluctuate because of fluctuations in the interest rates.
Exposure to interest rate risk
According to the Company interest rate risk exposure is only for floating rate
borrowings. Company does not have any floating rate borrowings on any of the
Balance Sheet date disclosed in this financial statements.
iii Price Risk
Price risk is the risk that the fair value of a financial instrument will fluctuate due
to changes in market traded price. It arises from financial assets such as
investments in quoted instruments.
a Fair value sensitivity analysis for fixed rate Instruments
The Company does not account for any fixed rate financial assets or financial
liabilities at fair value through Profit or Loss. Therefore, a change in interest
rates at the reporting date would not affect Profit or Loss.
b Cash flow sensitivity analysis for variable rate Instruments
The company does not have any variable rate instrument in Financial Assets or
Financial Liabilities.
24 Capital Management
The company's objectives when managing capital are to
• safeguard their ability to continue as a going concern, so that they can continue to
provide returns for shareholders and benefits for other stakeholders, and
• maintain an optimal capital structure to reduce the cost of capital.
The capital structure of the Company is based on management’s judgement of the
appropriate balance of key elements in order to meet its strategic and day-today needs. We
consider the amount of capital in proportion to risk and manage the capital structure in light
of changes in economic conditions and the risk characteristics of the underlying assets.
The management monitors the return on capital as well as the level of dividends to
shareholders. The Company will take appropriate steps in order to maintain, or if necessary
adjust, its capital structure.
28 Trade payable outstanding
The Company does not have any Trade Payables at the end of Financial year, hence Ageing
for the same is not required to be disclosed for Trade Payables.
29 Micro, Small And Medium Enterprises:
Since there are no Trade Payables at the end of the Financial Year, none of the parties are
identified as being registered under the Micro, Small and Medium enterprises Development
Act,2006 (“MSME Act ”) on the basis of information available with the Company. Hence the
disclosure as per MSME Act is not applicable to the Company. The same has been relied
upon by the auditors.
30 In the opinion of the management, the current assets, loans and advances have the values
on realization in the ordinary course of business at least equal to the amounts at which they
are stated in the balance sheet except the trade receivables and loans and advances which
falls under management's policy for bad and doubtful debts as taken in the previous years.
31 Cash Credit. Packing Credit and demand working capital loan from banks were secured by
hypothecation of stock and book debts and term loan from banks were secured by pari-
passu charge on all the immovable properties of the Company and hypothecation of
movable assets. On sale of said properties including movable assets by the banks under the
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002, the amount against said facilities and loans has been categorized as unsecured
loans of the accounts.
32 The Company has not made any transcation with the struck off companies during the
previous Year.
33 The Company does not have any Virtual Currency / Crypto Currency during the previous
Year.
34 As certified by the Management there is no obligation in respect of gratuity and leave
encashment during the year. The same is relied upon by the Director.
35 The Company does not have any pending creation of charge and satisfaction as well as
registration with ROC.
36 No proceedings have been initiated during the year or are pending against the Company as
at March 31, 2024 for holding any Benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
37 The Company has not given any Loan & Advances to Related Party, Promoter, Director and
KMP During the Year
38 There is no "undisclosed income’’ which has been reported by the Company during the
assessment.
39 No funds (which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person or entity, including foreign entity
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
40 No funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries ') or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
41 As per sec 135 of the Companies Act, 2013, Companies are required to spend 2% of there
Net profits over the three immediately preceding financial years as Corporate Social
Responsibility . Since the company has not fulfiled the conditions laid down in Sec 135 thus
CSR is not Applicable to the Company.
42 The Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority.
43 The Company does not have any immovable property, hence no disclosure regarding title
deeds of Immovable Property (other than properties where the Company is the lessee and
the lease agreements are duly executed in favour of the lessee) is required to be disclosed.
44 During the year, the Company has not revalued its Property, Plant and Equipment (including
Right-of-Use Assets).
45 The company does not hold any intangible assets during the year March 31,2024.
for B.M. Gattani & Co. On Behalf of the Board
Chartered Accountants For 52 Weeks Entertainment Limited
ICAI FRN : 113536W (CIN : L93000MH1993PLC072467)
Balmukund N Gattani (Cyrus Bhot) (Shantanu Sheorey)
Proprietor Director & CFO Whole time Director
Membership No. 047066 DIN: 00443874 DIN: 00443703
UDIN : 24047066BKABII5870
Date : 29/5/2024 Sonal Ratnawat
Place : Mumbai Company Secretary
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