2.13 Provisions
A provision is recognized when the Company has a present obligation Legal or Constructive that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. These estimates are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
2.14 Segment Reporting
The Company operates in a single segment only i.e Film Distribution and Dubbing.Thus, in the context of Ind AS 108 “Operating Segment”, issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.
2.15 Earnings per Share
Basic earnings per share are calculated by dividing the net profit/ loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
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 are adjusted for the effects of diluted potential equity shares, if any.
2.16 Contingent Liabilities and Assets
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements. Contingent Assets are not disclosed in the Financial Statements.
2.17 Impairment
Financial Assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired, if objective evidence indicates that one or
more events have had a negative effect on the estimated future cash flows of that asset.
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure :
a) Trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 18.
b) Other financial assets which are measured at amortised cost.
The Company follows simplified approach for recognition of impairment loss allowance on Trade receivables and other financial assets. The Company recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
Non Financial Assets
The carrying amount of non-financial assets other than inventories are assessed at each reporting date to ascertain whether there is any indication of impairment. If any such indication exists or when annual impairment testing for an asset is required, then the asset’s recoverable amount is estimated. An impairment loss is recognised, as an expense in the Statement of Profit and Loss, for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels into cash generating units for which there are separately identifiable cash flows.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment had been recognised.
2.18 Financial Instruments
Financial assets and liabilities are recognised when the company becomes a party to the contractual provisions of the instruments.
Financial Assets
Initial recognition and measurement:
Financial assets are classified into the following categories upon initial recognistion:
(a) those measured at amortised cost
(b) those to be measured subsequently at fair value through Statement of Profit & Loss.
The classification depends on the entity's business model for managing the financial assets and the contractual terms of cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income as the case may be.
All financial assets are initially recognised at fair value. Transaction costs of acquisition of financial assets carried at fair value through profit and loss are expensed in the Statement of Profit and Loss.
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured subsequently at amortised cost. Interest income from these financial assets is included in Other income using the effective interest rate method. Derecognistion:
The company derecognises a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of
Financial liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value . The company’s financial liabilities majorily comprises trade and other payables.
Financial liabilities are classified as 'Financial liabilities at fair value through profit or loss' if they are held for trading or if they are designated as financial liabilities upon initial recognition at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit and loss.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offsetted and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
2.19 Fair Value Measurement
Fair value is the price 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting year.
2.20 Recent Accounting Pronouncements
Ministry of Corporate Affairs (“MCA”) has notified the following new amendments to Ind AS which the Company has applied as they are effective for annual periods beginning on or after April 1, 2023.
(i) Amendment to Ind AS 1 “Presentation of Financial Instruments”
The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information is material if, together with other information can reasonably be expected to influence decisions of primary users of general purpose financial statements. The amendment does not have any significant impact on the company.
(ii) Amendment to Ind AS 12 “Income Taxes”
The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendment does not have any significant impact on the company..
(iii) Amendment to Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”
The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities use measurement techniques and inputs to develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The amendment does not have any significant impact on the company.
Use of Judgment's, Estimates and Assumptions
The preparation of the Company's financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Difference between actual results and estimates are recognised in the periods in which the results are known / materialise. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances existing when the financial statements were prepared. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is recognised in the year in which the estimates are revised.
The areas involving critical estimates and judgements are:
(i) Useful lives of Property, plant and equipment and intangibles [Refer Note 2 (2.3),(2.4) and (2.5)]
(ii) Measurement of defined benefit obligations (Refer Note 38)
28 Leases
The leasing arra ngements are in most cases renewa ble by mutua l consent, on mutua lly agreea bl e terms.
The Company's significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease The Company has not recognised any right- of- use asset ("ROU") due to low value of leases where in the lease period is more then twelve months.
29 Contingent liabilities & Capital Commitments: NIL
30 Loans & Advances
The company has granted Unsecured loans to five employees other than those covered under section 185 of the Act. The aggregate a mount of Loa ns given during the yea r is .3.26 la khs, Loa ns Received back during the yea r is .4.39 lakhs balance outstanding at the Balance sheet date is .2.32 lakhs (P.Y. .3.45 lakhs).
36 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the company's capital ma nagement is to maximise the shareholder value and to safeguard the companies ability to remain as a going concern.
The company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The current capital structure of the company is equity based with no financing through borrowi ngs. The company is not subject to any externally imposed capital requirement.
No changes were made in the objectives, policies or processes during the year ended 31st March, 2024 and 31st March, 202 3 respectively.
37 Fair value disclosures
37.1 The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
The categories used are as follows:
• Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs a nd mutual funds that have quoted price. ;
• Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize 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; and
• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included i n level 3.
37.2 Financial Risk Management- Objectives And Policies
The company's activities exposes it to variety of financial risk viz. credit risk, liquidity risk and market risk. The company has various financial assets such as deposits, Loans & Advances, trade and other receivables and cash and bank balances directly related to their business operations. The Company's principal financial liabilities comprise of trade and other payables. The company's senior management focus is to foresee the unpredictability and minimise the potential adverse effects on the company's financial performance. The company's overall risk, management procedures to minimize the potential adverse effect of the financial market on the company's performance are as follows :
37.3 Credit Risk
Credit risk is the risk that counterpa rty wi 11 not meet its obl igations under a financial i nstrument or customer contract, leading to a fi na ncial loss. The Company is exposed to credit risk primarily from trade receivables, cash and cash equivalents, and financial assets measured at amortised
A Trade Receivables:
Trade receivables of the Company are generally unsecured. The Company performs ongoing credit evaluations of its customers' financial conditions and monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business through i nternal evaluation. The a llowa nce for i mpa i rment of trade receivables is created to the extent a nd as a nd when required, based upon the expected collectability of accounts receivables. The Company has no concentration of credit risk as the customer base is geographical ly distributed in India.
B Cash and cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.
C Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes loans and advances, security deposits and others. Credit risk related to these other financial assets is ma naged by monitori ng the recovera bility of s uch a mounts continuously a nd is based on the credit worthiness of those pa rties.
Provision for expected credit losses
a) Expected credit losses for financial assets other than trade receivables
The Compa ny does not have a ny expected loss based i mpa irment recognised on such assets considering thei r low credit risk nature.
b) Expected credit loss for trade receivables under simplified approach
The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trend of default and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Based on such simplified approach,no allowance has been recognised.
37.4 Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The responsibility for liquidity risk management rests with the Board of directors, which has an appropriate liquidity risk management framework for the management of the Company's short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining
adequate reserves, banking facilities by regularly monitoring forecast and actual cash flows.
(i) Financial arrangements
The Company had access to the following undrawn borrowing facilities at the end of reporting period:
37.5 Market Risk
Market risk is the risk that the fairvalueoffuturecash flows ofa financial instrument 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. The company is not exposed to other price risk whereas the exposure to currency risk and i nterest risk is given below:
A Foreign Currency Risk
Foreign currency risk is the risk that the value of financial i nstruments will fl uctuate due to changes i n foreign exchange rates. It arises mainly where receivables and payables exist due to transactions entered in foreign currencies.
A.1 Foreign currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved board policy parameters. Quarterly reports are submitted to Board of Directors on the unhedged foreign currency exposures.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.
41.1 The Group has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1st April, 2023, with a transition date of 1st April, 2022. These standalone financial statements for the year ended 31st March, 2014 are the first the Group has prepared under Ind AS. For all years upto and including the year ended 31st March, 2023 , the Group prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 ('Previous GAAP').
The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Group has prepared financial statements which comply with Ind AS for year ended 31st March, 2024, together with the comparative information as at and for the year ended 31st March, 2023 and the opening Ind AS Balance Sheet as at 1st April, 2022, the date of transition to Ind AS.
In preparing these Ind AS standalone financial statements, the Group has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the standalone financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Group in restating its Previous GAAP financial statements, including the Balance Sheet as at 1st April, 2022 and the consolidated financial statements as at and for the year ended 31st March, 2023.
41.2 Exemptions applied
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS; The Group has applied the following exemptions:
(a) Deemed cost for property, plant and equipment and intangible assets
The Group has elected to apply previous GAAP carrying amount of its property, plant and equipment as deemed costas on the date of transition to Ind AS.
41.3 Exceptions
The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.
(a) Estimates
The estimates at 1st April,2022 and at 31st March, 2023 are consistent with those made for the same dates in accordance with India GAAP (after adjustments to reflectany differences if any, in accounting policies) apart from the following items where application of previous GAAP did not require estimation.
(b) Defined benefit obligation
In Previous GAAP, acturial gains and losses were recognised in the Statement of Proit and Loss. Under Ind AS, the acturial gains and losses form part of re-measurement of net defined benefit liability / asset which is recognised in other comprehensive income in the respective years.
42 Additional regulatory information required by Schedule III of Companies Act,2013
42.1 Details of Benami property:
No proceeding have been initiated or are pending against the Company for holding any Benami property under the Benami Transaction (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.
42.2 Utilisation of borrowed funds and share premium:
The Company has not advanced or loaned or invested funds to any other person (s) or entity (ies), including foreign entities (Intermediaries) with
(a)
the understanding that the Intermediary shall:
i) directly or indirectly lend or invest in other person or entities identified inany manner whatsoever by or on behalf ofthe Company (Ultimate Beneficiaries) or
ii) provide any guarantee,security or the like or on behalf of the ultimate beneficiaries.
The Company has not received any fund from any person (s) or entity (ies), including foreign entities (Funding Party) with the understanding
(b)
(whether recorded in writing or otherwise) that the Company shall:
i) directly or indirectly lend or invest in other person or entities identified inany manner whatsoever by or on behalf ofthe Company (Ultimate Beneficiaries) or
ii) provide any guarantee,security or the like or on behalf of the ultimate beneficiaries.
42.3 Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Companies Act,2013.
42.4 Compliance with approved scheme (s) of arrangements:
The Company has not entered into any scheme or arrangement which has an accounting impact on current or previous year.
42.5 Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year inthe tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
42.6 Details of crypto currency or virtual currency:
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
42.7 Valuation of Property, Plant and Equipment:
The Company has not revalued its property, plant and equipment (including right-of-use-assets) during the current or previous year.
42.8 Willful Defaulter:
The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
42.9 Details of Transaction with Struck of Companies:
There are no Transactions with Struck of Companies during the Current and Previous Year.
43 The previous year figures have been regrouped/ reclassified, wherever necessary to confirm to the current year presentation.
SIGNATORIES TO SCHEDULES "1 TO 43"
As per our report of even date attached For and on behalf of the Board of Directors
For and on behalf of B.L.Dasharda & Associates
Chartered Accountants Manish Dutt Krishi Dutt
FRN No. 112615W Managing Director Director
(DIN : 01674671) (DIN : 01674721)
Sushant Mehta Prasad Sawant Aparna Akadkar
Partner Chief Financial Officer Company Secretary
M.No. 112489
Place: Mumbai Place: Mumbai
Dated : 30th May,2024 Dated : 30th May,2024
UDIN NO:24112489BKANXV5941
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