Company had incorporated a wholly owned subsidiary company - Radaan Media Ventures Pte Limited in Singapore to engage in media & entertainment activities. During the year, company had not entered into any business transaction. As on 31-03-2015, reimbursement due payable by subsidiary was Rs.12,63,889. Pursuant to provisions of section 129(3) of the Companies Act, a statement containing salient features of the financial statements of the subsidiary company as required in the prescribed form AOC-1 is provided here below:

2.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'.

3.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.

4. 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.

5. 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:

6. 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)

7. The total of future minimum sublease payments expected to be received under non-cancellable subleases at the balance sheet date - NIL

8. 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/-

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

10. 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.

11. The company formed a trust named 'Radaan Mediaworks India Limited Employees Group Gratuity Assurance Scheme' with intent to enter into an approved scheme of group gratuity with Life Insurance Corporation of India and to administer for the benefit of the employees. The gratuity report provided by LIC of India as at 31st March 2015 under AS-15 in respect of gratuity of employees of the Company is given below:

12. Leave Encashment:

Company has taken an insurance policy with LIC of India for Group Leave Encashment Assurance Scheme for the benefit of employees. The report provided by LIC of India as at 31st March 2015 under AS 15 in respect of Group Leave Encashment of employees of the Company is given below:

13. 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.

14. 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 offof Rs.28,32,800 for the F.Y.2014 - 15 held under Non Current Assets.

15. 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.

16. Related Parties Disclosure:

As per the Accounting Standard 18 - Related Party Disclosures issued by the Institute of Chartered Accountants of India, the Company's related parties and transactions are listed below: a. Partv(ies) having control:

17. 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.

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

19. Contingent Liabilities:

SI.      Particulars                          31.03.2015     31.03.2014
No                                            (in Rs.1)       (in Rs.1)

1 * October 2004 to September 2007 (inclusive of penalty of Rs.10 crore) 19,30,27,340 19,30,27,340

  * October 2007 to September 2010
  (excluding penalty)                       4,68,55,299    4,68,55,299

20. Sales Tax

April 2001 to March 2006 (including of penalty of Rs.29,04,10,859) 48,40,18,098 48,40,18,098

21. Service Tax:

Service tax demand was contested before CESTAT, Chennai and a stay was granted without any pre-deposit condition for the period October 2004 to September 2010. In respect of service tax demand of similar nature for the period October 2010 to September 2012, an appeal has been filed before CESTAT.

22. Sales Tax:

Hon'ble High Court of Madras granted interim stay order against sales tax demand for the period 2001 - 02 to 2004 - 05 and partially for the year 2005 - 06 as prayed by the Company. Company has filed an appeal before Appellate Deputy Commissioner (CT) III, Chennai for the part of the disputed demand for the year 2005 - 06 amounting to Rs.2,28,60,665/- not covered under the stay order of Hon'ble High Court and as a condition have deposited a sum of Rs.50,10,401/-and also furnished personal bond by Chairperson & Managing Director for Rs. 1,78,50,265/- for stay of collection of tax.

Hon'ble High Court of Madras has made interim stay granted earlier as absolute stay; vide order dated 19-11-2014.

In the above referred cases, Management firmly believes that its stand is likely to be upheld in the appellate process.

23. Licensed and Installed capacity - Not Applicable

24. Tax Expense:

* Minimum Alternate Tax (MAT) has been provided during the year on the resultant 'Book Profit' of the company.

* No provision is required for income tax on account of carried forward losses from the earlier years and hence not provided for.

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

26. Figures have been rounded off to the nearest rupee.