Accounting Policies of 52 Weeks Entertainment Ltd. Company

Mar 31, 2024

1.4. Significant Accounting Policies:

The principal accounting policies adopted in the preparation of the financial statements
are set out below. The policies have been consistently applied to all years presented,
unless otherwise stated. The presentation of financial statements requires the use of
certain accounting estimates. The areas where significant judgments and estimates
have been made in preparing the financial statements and their effects are disclosed.

A. Property Plant& Equipment:

(a) Initial Measurement & Recognition

Property, plant and equipment are carried at cost less accumulated
depreciation and impairment losses, if any. The cost of an item of Property,
plant and equipment comprises its purchase price, including import duties
and other non-refundable taxes or levies and any directly attributable cost of
bringing the assets to its working condition for its intended use with any
trade discounts or rebates being deducted in arriving at purchase price.

Cost of the assets also includes interest on borrowings attributable to
acquisition, if any, of qualifying fixed assets incurred up to the date the asset
is ready for its intended use.

If significant parts of an item of property, plant and equipment have different
useful lives, then they are accounted for as separate items (major
components) of Property, plant and equipment.

Cost of Property, plant and equipment not ready for intended use as on the
balance sheet date, is disclosed as capital work in progress. Advances
given towards acquisition of property, plant and equipment outstanding at
each balance sheet date are disclosed as Capital Advances under Other
non-current Assets.

Any gain or loss on disposal of an item of property plant and equipment is
recognised in statement of profit and loss.

(b) Subsequent expenditure

Subsequent costs are included in the asset’s carrying amount or recognised
as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. All other repairs and maintenance
are charged to the Statement of Profit and Loss during the period in which
they are incurred.

(c) Depreciation:

Depreciation is provided based on estimated useful life prescribed under
Schedule II to the Companies Act, 2013 on Written Down Value Method.
Depreciation on assets added/disposed off during the year is provided on
pro-rata basis from the date of addition or up to the date of disposal, as
applicable.

The residual values, useful lives and method of depreciation of property,
plant and equipment is reviewed at each financial year end and adjusted
prospectively, if appropriate.

Accordingly, in the current Financial year 2023-24, the carrying value of the
PPE has reached the scrap value as decided by the Management

judgement (i.e.: 5%), no Depreciation is provided for the assets held by the
Company during the entire Financial year.

B. Inventories

Inventories are valued at the lower of cost and net realisable value. Cost is
computed on a weighted average basis. Cost of finished goods and work-in¬
progress include all costs of purchases, conversion costs and other costs incurred
in bringing the inventories to their present location and condition. The net
realisable value is the estimated selling price in the ordinary course of business
less the estimated costs of completion and estimated costs necessary to make
the sale

C. Cash and Cash Equivalents

Cash and cash equivalents are short-term (three months or less from the date of
acquisition), highly liquid investments that are readily convertible into cash and
wh ich are subject to an insignificant risk of changes i n value.

D. Financial Instruments:

(A) Financial Assets

Recognition and measurement

Financial assets are recognised when the Company becomes a party to
the contractual provisions of the instrument. On initial recognition, a
financial asset is recognised at fair value, in case of Financial assets
which are recognised at fair value through profit and loss (FVTPL), its
transaction cost is recognised in the statement of profit and loss. In other
cases, the transaction costs are attributed to the acquisition value of the
financial asset.

Financial assets are subsequently classified as measured at

• amortised cost

• Fair value through profitand loss (FVTPL)

• Fair value through other comprehensive income (FVOCI)

(a) Measured at amortised cost: Financial assets that are held within a
business model whose objective is to hold financial assets in order to

collect contractual cash flows that are solely payments of principal
and interest, are subsequently measured at amortised cost using the
effective interest rate (‘EIR’) method less impairment, if any. The
amortisation of EIR and loss arising from impairment, if any, is
recognised in the Statement of Profit and Loss.

(b) Measured at fair value through other comprehensive income:

Financial assets that are held within a business model whose
objective is achieved by both, selling financial assets and collecting
contractual cash flows that are solely payments of principal and
interest, are subsequently measured at fair value through other
comprehensive income. Fair value movements are recognized in the
other comprehensive income (OCI). Interest income measured using
the EIR method and impairment losses, if any are recognised in the
Statement of Profit and Loss. On de-recognition, cumulative gain or
loss previously recognised in OCI is reclassified from the equity to
‘other income’ in the Statement of Profit and Loss.

(c) Measured affair value through profit or loss: A financial asset not
classified as either amortised cost or FVOCI, is classified as FVTPL.
Such financial assets are measured at fair value with all changes in
fair value, including interest income and dividend income if any,
recognised as ‘other income’ in the Statement of Profit and Loss.

Financial assets are not reclassified subsequent to their recognition,
except if and in the period the Company changes its business model
for managing financial assets.

Trade Receivables and Loans:

Trade receivables and loans are initially recognised at fair value.
Subsequently, these assets are held at amortised cost, using the
effective interest rate (EIR) method net of any expected credit losses.
The EIR is the rate that discounts estimated future cash income
through the expected life of financial instrument.

Equity Instruments:

An equity instrument is any contract that evidences a residual interest
in the assets of an entity after deducting all of its liabilities. Equity
instruments issued by the Company is recognised at the proceeds
received, net of direct issue costs.

All investments in equity instruments classified under financial assets
are subsequently measured at fair value. Equity instruments which
are held for trading are measured at FVTPL. For all other equity
instruments, the Company may, on initial recognition, irrevocably
elect to measure the same either at FVOCI or FVTPL. The Company
makes such election on an instrument-by-instrument basis. Fair value
changes on an equity instrument shall be recognised as ‘other
income'' in the Statement of Profit and Loss unless the Company has
elected to measure such instrument at FVOCI. Fair value changes
excluding dividends, on an equity instrument measured at FVOCI are
recognised in OCI. Amounts recognised in OCI are not subsequently
reclassified to the Statement of Profit and Loss. Dividend income on
the investments in equity instruments are recognised as ‘other
income’ in the Statement of Profit and Loss.

De-recognition

The Company derecognises a financial asset when the contractual
rights to the cash flows from the financial asset expire, or it transfers
the contractual rights to receive the cash flows from the asset.

Impairment of Financial Assets

Expected credit losses are recognized for all financial assets
subsequent to initial recognition other than financials assets in FVTPL
category. For financial assets other than trade receivables, as per Ind
AS 109, the Company recognises 12 month expected credit losses for
all originated or acquired financial assets if at the reporting date the
credit risk of the financial asset has not increased significantly since its
initial recognition. The expected credit losses are measured as lifetime
expected credit losses if the credit risk on financial asset increases
significantly since its initial recognition. The Company’s trade
receivables do not contain significant financing component and loss
allowance on trade receivables is measured at an amount equal to life
time expected losses i.e. expected cash shortfall. The impairment
losses and reversals are recognised in Statement of Profit and Loss, if
any.

(B) Financial Liabilities:

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to
the contractual provisions of the instrument. Financial liabilities are initially
measured at the amortised cost unless at initial recognition, they are
classified as fair value through profit and loss. In case of trade payables,
they are initially recognised at fair value and subsequently, these liabilities
are held at amortised cost, using the effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the
EIR method. Financial liabilities carried at fair value through profit or loss is
measured at fair value with all changes in fair value recognised in the
Statement of Profit and Loss.

De-recognition

A financial liability is derecognised when the obligation specified in the
contract is discharged, cancelled orexpires.

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Mar 31, 2015

1. Fixed Assets:

- Tangible fixed assets are stated at cost of acquisition or construction less accumulated depreciation. The cost of fixed asset includes non-refundable taxes & levies, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowing cost attributable to acquisition or construction of qualifying fixed assets is capitalized to respective assets when the time taken to put the assets to use is substantial.

- Depreciation on fixed assets is provided on Written Down Value on the basis of the depreciation rates prescribed in Schedule II of the Companies Act, 2013 or based on useful life of the asset as estimated by the management, whichever is higher.

2. Basis of Accounting:

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP) in India. GAAP includes Accounting Standards (AS) notified by the Government of India under Section 133 of the Companies Act, 2013, provisions of the Companies Act, 2013, pronouncements of Institute of Chartered Accountants of India and guidelines issued by Securities and Exchange Board of India (SEBI). The Company has presented financial statements as per format prescribed by Revised Schedule III, notified under the Companies Act, 2013, issued by Ministry of Corporate Affairs. Except where otherwise stated, the accounting policies are consistently applied.

3. Investments:

Long Term Investments are stated at cost except that there is permanent diminution in value of the said investment as required by AS-13. Company has acquired 50% stake Four Lions Films Pvt. Ltd.

4. Taxation:

Provision for current tax is made for the tax liability payable on taxable income after considering the allowances, deductions and exemptions and disallowances if any determined in accordance with the prevailing tax laws.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. In the case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty or realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

5. Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

6. Use of Estimates:

The preparation of financial statements in conformity with GAAP requires management to make assumptions, critical judgements and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets, liabilities and contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known or materialize.

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Mar 31, 2014

1. Fixed Assets:

Fixed assets are capitalized at cost inclusive of freight, duties, taxes, insurance, installation and net of cenvat credit and VAT set off.

2. Depreciation:

Depreciation on fixed assets for own use has been provided based on straight-line method and at the rates prescribed by Schedule XIV of the Companies Act, 1956. Depreciation on assets added/disposed off during the year is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable.

3. Basis Of Accounting:

The financial statements have been prepared under the historical cost convention on an accrual system based on principle of going concern and are in accordance with the generally accepted accounting principles and the accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

4. Investments:

Long Term Investments are stated at cost except that there is permanent diminution in value of the said investment as required by AS-13 .Current investments are carried at cost or market value.

5. Taxation:

Income tax expense comprises current tax, deferred tax charge or release and charge on account of fringe benefit tax. The deferred tax charge or credit is recognized using substantially enacted rates. In the case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty or realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

6. Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

7. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement except where virtual certainty is there.

8. Use of Estimates:

The preparation of financial statements is in conformity with the generally accepted accounting principles, which requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported Period. Difference between the actual results and estimates are recognized in the Period in which the results and estimates are recognized in the Period in which the results are known or materialize.

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Mar 31, 2012

A) Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis.

b) Fixed Assets and Depreciation

During the year, there are no fixed assets in the Company, hence there is no provision of Depreciation made during the year.

c) Current Assets:

Current assets are accounted at cost or realisable value whichever is lower.

d) Taxation:

No provision for Income-Tax has been made for the financial year 2011-2012 in view of set off available in respect of unabsorbed depreciation under the Income Tax Act.

e) Earnings per Share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

f) Deferred Tax Asset

There is unabsorbed business loss of Rs. 744.35 lakhs as per Income Tax assessment. However, in view of suspension of operations, no deferred tax asset has been recognised in the books of account as prescribed under Accounting Standard 22, Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India. The above unabsorbed loss does not include loss suffered on sale of the part of the company's total assets disposed off by the banks under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The profit or the loss as the case may be, will be calculated and claimed once the entire project, which is under pari-passu charge, is disposed off and or settled by the consortium banks against their loans.

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Mar 31, 2010

(i) systems of accounting]

The financial statements are prepared under the historical cost convention on accrual basis.

(ii) FIXED ASSETS AND DEPRECLATION:

a) Foxed assets ate stated at cost depreciation. The cost of fixed assets includes interest on specific borrowings obtained for the purpose of a Acquiring fixed assets up to the date of commencement of commercial production and other incidental and pre-operation expense incurred up to that date.

b) Depreciation is provided on straight Line Method at to rates and in the meaner specified in such XIV to the companies Act, 1956.

(iii) Current Assets

a) Current assets are accounted at cost or realisable value whichever is lower.

b) Inventories are valued at cost or market value whichever is lower, where cost is worked out on weighed average basis.

(iv) Preliminary and pre operative Expenses:

All expense incurred on the formation of the company and other expense up to the date of commercial production is grouped under preliminary and pre-Operative expense. Preliminary and public issue expenses was written off over a period of 10 years.