2.20 Provisions and contingencies
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows
(when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
2.21 Share issue expenses
Share issue expenses are adjusted against the Securities Premium Account as permissible under Section 52 of the Companies Act, 2013, to the extent any balance is available for utilisation in the
Securities Premium Account. Share issue expenses in excess of the balance in the Securities Premium Account,if any is expensed in the Statement of Profit and Loss.
2.22 Fair value measurement
Fair value is the price that would be received to sell an asset or settle a liability in an ordinary transaction between market participants at the measurement date. The fair value of an asset or a
liability is measured using the assumption that market participants would use when pricing an asset or a liability acting in their best economic interest. The Company used valuation techniques,
which were appropriate in circumstances and for which sufficient data were available considering the expected loss/ profit in case of financial assets or liabilities.
2.23 Insurance claims
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect
ultimate collection.
2.24 Service tax input credit
Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is reasonable certainty in availing/ utilising the credits.
2.25 Operating Cycle
Based on the nature of activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating
cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
2.26 Current and non Current classfication :
i. The assets and liabilities in the Balance Sheet are based on current/ non - current classification. An asset as current
when it is:
1 Expected to be realised or intended to be sold or consumed in normal operating cycle
2 Held primarily for the purpose of trading
3 Expected to be realised within twelve months after the reporting period, or
4 Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period
All other assets are classified as non - current.
ii A liability is current when:
1. Expected to be settled in normal operating cycle
2. Held primarily for the purpose of trading
3. Due to be settled within twelve months after the reporting period, or
4. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period
All other liabilities are treated as non - current.
Deferred tax assets and liabilities are classified as non - current assets and liabilities.
2.27 Recent accounting pronouncements
2.28.1 Standards issued but not yet effective
In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to IndAS 7, 'Statement of cash flows' and Ind AS 115 Revenue
from Contracts with Customers These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, 'Statement of cash flows and IFRS 15 Revenue
from contracts with customers respectively The amendments are applicable to the Company from April 1, 2017 and April 1, 2018 respectively
Amendment to Ind AS 7:
The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities,
including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for
liabilities arising from financing activities, to meet the disclosure requirement.
The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.
Ind As 115 - Revenue from contracts with customers
Ind As 115 was issued in Febuary 2015 and establishes a five step model to account for revenue arising from the contract with customrs. Under Ind AS 115 revenue is recognised at an
amount that reflects the consideration to which an entity expects to be entitled in the exchange for transferring goods or servics to a customer. The new revenue standard will
supersede all current revenue recongnition requirements under Ind As. This standard will come into forse from accounting period commencing on or after 1st April, 2018. The company
will adopt the new standard on the required effective date. During th current year, the Company is evaluating the requirements of the amendment and the effect on the financial
statements is being evaluated
d) The company has only one class of equity shares having a par value of Rs. 4 per share. Each holder of equity shares is entitled to one vote per share. Equity
Shareholders are eligible to dividend proposed by the Board of Directors as approved by Shareholders in the ensuing Annual General Meeting.
e) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders
f) Securities Premium Account: This account is created when shares are issued at premium. The Company may issue fully paid-up bonus shares to its members out of
the security premium account and company can use this account for buyback of its shares.
23 Financial Instruments
(a) Financial risk management objective and policies
This section gives an overview of the significance of financial instruments for the company and provides additional
information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial
asset, financial liability and equity instrument.
(b) FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES:
The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and
other payables and advances from Customers. The Company's principal financial assets include Investment, loans
and advances, trade and other receivables and cash and bank balances that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management
oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of
these risks, which are summarised below.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial assets will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial Assets affected by market risk include loans and
borrowings, deposits and derivative financial instruments.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates
relates primarily to the Company's long-term debt obligations with floating interest rates.
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign
currency).
Credit Risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables).
Trade Receivables
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures
and control relating to customer credit risk management. Outstanding customer receivables are regularly
monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.
Financial Instruments and Cash Deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department
in accordance with the Company's policy. Investments of surplus funds are made only with approved authorities.
Credit limits of all authorities are reviewed by the Management on regular basis.
Liquidity Risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.The Company's objective is to
maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, Letter of
Credit and working capital limits.
24 Capital Management
For the purpose of the Company's capital management, capital Includes Issued equity capital,
securities premium and all other equity reserves attributable to the equity holders of the
Company. The primary objective of the Company's capital management is to safeguard
continuity, maintain a strong credit rating and healthy capital ratios in order to support its
business and provide adequate return to shareholders through continuing growth.
The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. The funding requirement is
met through a mixture of equity and internal accruals.
25 Post Reporting Events
No adjusting or significant non-adjusting events have occurred between the reporting date and
the date of authorisation.
26 Authorisation Of Financial Statements
The financial statements for the year ended March 31, 2023 were approved by the Board of
Directors on 22TH MAY 2023. The management and authorities have the power to amend the
Financial Statements in accordance with Section 130 and 131 of The Companies Act, 2013."
27 The company has not obtained registration under PF & ESIC Act, as required under the
prevailing law, since the number of employees employed exceeded the prescribed limit. The
company is planning to obtain such registration under the respective act after receiving an
expert opinion on the matter. The liability arising on such an account is not determined.
28 In the opinion of the Management, Current Assets, Loans and Advances are of the value stated,
if realized in the ordinary course of business, subject to confirmation and realisation.
29 The Board of director of the company is chief operating desicion maker (CODM) monitors the
operating result of the company. CODM has identified only one repotable segment as the
company is providing cable television network and allied services only. The operations of the
Company are located in India.
30 There is no contingent liability as on March 31. 2023.
31 In the opinion of the Board, the current assets are approximately of the value stated, if realised
in the ordinary course of business. The provision for all known liabilities are adequate and not in
excess of amount reasonably necessary.
32 Information in respect of micro and small enterprises as at 31st March 2023 as required by
Micro, Small and Medium Enterprises Development Act, 2006
(Based on the information, to the extent available with the company)
The principal amount and the interest due thereon remaining unpaid to any MSME supplier as at
the end of each accounting year:-
34 Other information reauired under Schedule III of the Companies Act 2013:
a) Company has not revalued the Plant, Property and Equipment during the year or in previous
year.
b) Company does not have any undisclosed income, which has not been recorded in the books of
accounts that has been surrendered or disclosed as income during the year in the tax
assessment under the Income tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act,1961).
c) No proceeding have been initiated or pending against the company for holding any benami
property under the Benami Transaction (Prohibition) Act, 1988(45 of 1988) and the rules made
there under.
d) The Company have not traded or invested in Crypto currency or Virtual Currency during the
financial year.
e) The Company do not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.
f) Company has not been declared wilful defaulter by any banks /Financial Institution.
g) Company has not held any transaction with another company whose name has been struck off.
h) Company has not approved any scheme of arrangement.
i) Company does not have any immovable properties whose title deeds are not in the name of the
company.
j) Company has not granted loan to promoter director and KMPs and related parties, severally or
jointly with any other person during the year.
k) Provision of Section 135 of the Companies Act 2013 related to Corporate Social Responsibility is
not applicable to the company.
l) The Company do not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.
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